STELLANTIS NVShort
Stellantis cornered: Will it be able to reinvent itself?
Paris is at a critical point. Marine Le Pen and her party, Rassemblement National, are pushing for changes to the 2025 budget, threatening a motion of censure that could destabilize the government. Political instability has severely impacted French bonds, intensifying concerns about the stability of the eurozone.
In the midst of this crisis, Stellantis (Ticker AT: STLA.IT) is going through a complicated phase. Carlos Tavares, the company's CEO, resigned unexpectedly after a year marked by a 40% drop in the value of its shares, a profit warning and a cash burn of 10 billion euros, factors that have eroded market confidence.
Stellantis currently trades at 11.990 euros, well below the 27.345 euros recorded in March. This fall has placed it in a sideways range between €15.972 and €10.448. From a technical point of view, the RSI is at 30.20%, reflecting a significant oversold level. However, the technical picture is unfavorable: on the weekly chart, since July 29, the 50-day moving average has crossed the 100-day downwards, while the 200-day average is approaching a crossover with the 100-day, which would confirm a more pronounced downtrend. On the daily chart, this crossover has already materialized, reinforcing a bearish expansion.
At this juncture, John Elkann, chairman and major shareholder through EXOR (AMS:EXOR), will lead an interim committee until a new CEO is elected in 2025. The company's ability to get through this stage will depend on its ability to implement effective strategies and restore investor confidence.
Stellantis is facing a turning point, both technically and fundamentally. Will it succeed in reversing the trend and strengthening its position in the global market? The next strategic decisions will be key to determine its future.
Ion Jauregui - ActivTrades Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
In the midst of this crisis, Stellantis (Ticker AT: STLA.IT) is going through a complicated phase. Carlos Tavares, the company's CEO, resigned unexpectedly after a year marked by a 40% drop in the value of its shares, a profit warning and a cash burn of 10 billion euros, factors that have eroded market confidence.
Stellantis currently trades at 11.990 euros, well below the 27.345 euros recorded in March. This fall has placed it in a sideways range between €15.972 and €10.448. From a technical point of view, the RSI is at 30.20%, reflecting a significant oversold level. However, the technical picture is unfavorable: on the weekly chart, since July 29, the 50-day moving average has crossed the 100-day downwards, while the 200-day average is approaching a crossover with the 100-day, which would confirm a more pronounced downtrend. On the daily chart, this crossover has already materialized, reinforcing a bearish expansion.
At this juncture, John Elkann, chairman and major shareholder through EXOR (AMS:EXOR), will lead an interim committee until a new CEO is elected in 2025. The company's ability to get through this stage will depend on its ability to implement effective strategies and restore investor confidence.
Stellantis is facing a turning point, both technically and fundamentally. Will it succeed in reversing the trend and strengthening its position in the global market? The next strategic decisions will be key to determine its future.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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