Fiat Chrysler stock
Fiat Chrysler Automobiles (FCAU) turned positive last week after trading on a negative note for the previous three weeks. The stock rose by 1.1% in the week ended March 22 as compared to 0.8% losses in the S&P 500 Index. On a month-to-date and a year-to-date basis, FCAU has risen 0.3% and 2.2%, respectively, as of March 25.
Key recent updates
In the final week of February, Fiat Chrysler announced that it would expand its production (XLY) capacity in Michigan. The company plans to invest about $4.5 billion to build a new assembly plant in Detroit and increase production at five of its Michigan factories. Fiat Chrysler expects to create about 6,500 new jobs with this move, which received praise from President Donald Trump.
On February 27, Trump thanked Fiat Chrysler and informed his Twitter followers about the company’s plans. He said FCAU is “doubling its hourly workforce as part of a 4.5 Billion Dollar investment. Thank you, Fiat Chrysler. They are all coming back to the USA, it’s where the action is!”
However, weakness in the European economy as suggested by the dismal Germany Manufacturing PMI data released last week could hurt Fiat Chrysler investors’ sentiments, as a large portion of its revenues comes from the European market.
Key technical levels
On Monday, March 25, Fiat Chrysler stock settled at $14.78. It has been trading in a narrow price range of $14.30 to $15.20 since the second week of February. These two levels are likely to continue acting as immediate support and resistance levels in the coming weeks. Its 14-day setup of RSI (relative strength index) indicator was at 48.9, close to the line of equilibrium, reflecting a mixed bias in the momentum.