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Could Stronger Jeep Sales Support Fiat Chrysler Stock?

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Mar. 15 2018, Updated 7:33 a.m. ET

Fiat Chrysler stock

Last week, Fiat Chrysler stock (FCAU) rose 5.5% after two weeks in negative territory. In the previous week, the stock fell ~8.2%.

In February 2018, Fiat Chrysler turned negative and fell 12.3%. In January, the stock outperformed the broader market and other automaker stocks and posted solid gains of 35.5%. In 2017, the S&P 500 rose 19.4%, while FCAU rose 96.4%. Let’s take a closer look at some key technical levels for Fiat Chrysler stock.

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Support and resistance levels

As of March 9, Fiat Chrysler stock had risen by an impressive 18.6% this quarter, whereas the S&P 500 had risen 4.2%. Fiat Chrysler stock settled at $21.15 on Friday last week. While the stock posted an all-time high of $24.95 on January 25, since then, it has fallen ~15.2%. An immediate resistance level lies at $21.55, followed by a key resistance at its all-time high. On the downside, an immediate swing support level was seen near $20.05. Its 14-day RSI (relative strength index) score was below the line of equilibrium of 45.7, indicating neutral momentum.

Solid gains in US Jeep sales

In February 2018, FCAU’s US sales fell for a 17th month and 1% YoY (year-over-year). The company’s US fleet sales continued to fall last month, by 3% YoY. Interestingly, the Italian-American giant reported a 10% YoY rise in its Jeep brand US retail sales. Note that FCAU’s strategy to focus on more profitable retail sales and cut fleet sales has improved its profit margins in the last few quarters.

Fiat Chrysler is known to have the worst profit margins among mainstream automakers (FXD). Whereas it has managed to improve its profit margins in the last eight quarters, it has yet to match the profit margins of Ford (F), General Motors (GM), and Toyota (TM). Continue to the next part, where we’ll look at Tesla stock’s recent prices.

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