October 11 Chart of the Day - Stellantis
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Stellantis (STLA) is an automotive manufacturing company formed from the merger in 2021 of the Italian–American conglomerate Fiat Chrysler Automobiles (FCA) and the French PSA Group. The company headquarters are located in Hoofddorp, Netherlands.
With 24 brands, Stellantis was the world's fourth-largest automaker by sales, behind Toyota, Volkswagen Group, and Hyundai Motor Group at the end of 2023.
The company has been making recent headlines as the CFO was ousted and the CEO announced his retirement so we wanted to review their chart from a price action technical analysis perspective.
Stellantis portfolio companies include several familiar names.
We have featured over 300 Charts of the Day since May 2023 and teach Price Action Technical Analysis Trading for FREE to traders who join our Highly Rated Trade Room.
Monthly Chart
On the monthly chart we can see that after setting its $29.51 all time high (ATH) earlier this year price fell dramatically over the next several months all the way down under $13 earlier today.
Currently, price is in search of a definitive bottom.
Weekly Chart
On the weekly chart we can see with much more clarity the fall from ATHs, and the relentless selling pressure. The bulls seemingly have disappeared...
On the way down price crossed a change control zone (dark shaded gray rectangle) roughly between $16.75 and $17.75 for the 10th time since 2021 and 15th time overall.
Change control zones are one of the five price action tools we teach when charting anything. By definition, they are an area that represents where neither the bulls nor bears are in charge. Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it. Or, price can trade aimlessly sideways within it. When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.
Trading around $12.95 earlier today price may be attempting to bounce out of this demand zone (light gray rectangle) it's currently in.
A demand zone is another one of the five price action tools we teach. It's a price area on a chart where there is a high demand for the underlying asset based on historical price action in and around the same area where buyers could be prepared to purchase at different levels within the zone. A demand zone is present within the light gray rectangle and has a high buying potential.
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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