Fiat Chrysler in Perfect pplace to Buy plus Cheap Option premiumLoading up on some Jan 15 11.54 Strike Calls at a good price today. Grab and hold for potential intermediate term profit. Target $12-$13 Zone #fcau @fcau
FCAU
FCAU - FIAT Chrysler Technical AnalysisPrices are moving inside the channel - wisest option is to wait.
Risky option - go long
NYSE:FCAU
Fundamental News:
General Motors requests removal of judge and to vacate order from RICO lawsuit against Fiat Chrysler
FCAU - Fit Chrysler Technical AnalysisNYSE:FCAU
Short Term - Prices might go long and then they can move sideways.
The Fan Principle can be seen as a weakness signal (perhaps, it might work as reversal signal).
FCAU potential shortA put option here might be appealing with a target of $13 (break even would be $12.80).
Volume has dropped off a cliff however so this move downward may not have all that much room to fall so I would be cautious with a short entry or buying a put here.
Strategies to Buy This Value Automobile StockFCAU has seen considerable improvement under its new management, and with the recent cleaning up of debt, they announced last month that they will be giving out dividends. FCAU has not paid a dividend since 2016, so this is incredible news for what I believe to be a very valuable stock to own in the next few years.
Despite positive earnings, FCAU has seen a tremendous drop. Historically, this is followed by a drop in sentiment and an eventual rebound. Though a "cup and handle" rebound attempt was seen, it was immediately followed by a descending triangle pattern, breaking out into new lows. The average RSI-26 on the 30min candles seems to be descending linearly to the 30 line, where it historically picks up again. This is suspected to take place between March 14th to March 16th 2019.
My suggestion is to pyramid in your buys once the latest low is tested and stop around a 5.5% low from the initial low after the earnings announcement. This gives you the following target buy points:
$14.34
$14.22
$14.13
$14.07
$14.01
$13.93
$13.80
There is, however, a possibility that the best time to buy will be sooner than later. This, I believe, is largely dependent upon the current overall market trends. The S&P and Nasdaq Composite Indexes have been shaky lately. If the overall market rises, we will see this stock recover much more quickly, since it's Beta is close to a 2. In which case, jump on anytime and ride that bull.
FCAU sells auto parts unit to Japanese Manufacturer KKRThere was news released on Aug 23 that KKR wants to purchase the auto parts unit from Fiat Chrysler for 5.8 billion euro. The stock gapped up next day, but didn't vary during the day. Second day from the news it increased $1 from $16.86 to $17.87. Now KKR is offering more money than before (6.2 billion euro), so I expect the price should go up in premarket. The reaction at the time on KKR was not clear, I don't know if the investors perceived it as good news, bad news or who cares news.
FCAU IDEA UPDATE (STILL LOOKING TO GO LONG)Depending on where this opens this week it could fall a bit but still looking to go long on FCAU.
FCAU - long from present price to 10 FCAU seems breaking up its recent channel formation & crossed above the down line of long term channel.
It also seems a fallen angel type of action & showing strong upward momentum.
Twigges moneyflow is going shooting up & volume is huge. On the other side huge volume is on the Option calls side. That indicates people has long term bullish opinion in this.
We also considering $7.00 January option calls, March $7 call seems interesting as well.
You can check our detailed analysis on FCAU in the trading room/ Executive summary link here-
www.youtube.com
Time Span: 13:00"
Trade Status: Pending
FCAU IdeaBullish Gap and Go. Though it ended the day with a bearish candle, if we break today's high, we should continue up to the next resistance level. It just broke an evening star reversal with a bullish gap. candle bounced nicely off of the resistance/support level today. Enter with a stop limit order of 9.66 with a stop at 9.40
Gap is similar to gap that I pointed out with the horrible arrow. Bullish gap and go there as well after a rest as it battled the resistance level. If we break bearish from here rather than continue up, look for a bounce off the 10 EMA
Buy Stocks on the Rumor, Sell on the NewsFiat Chrysler to invest $1.5B at Sterling Heights plant
www.detroitnews.com
Buy Stocks on the Rumor, Sell on the News
So looks like channel trading. Lean towards short side more but good options strategy would be great for this type of trade if you know how to trade in this channel choppy side movement trade.
