Fiat Chrysler shares gain a seventh straight session on Monday, company to discontinue Mexican production in case of high tariffs
On January 9th, at the Detroit auto show, Fiat Chrysler’s Chief Executive Officer Sergio Marchionne said that in case the Trump administration sets quite high tariffs on vehicles manufactured in Mexico and then imported to the United States, the company may discontinue production process at its Mexican plants.
Fiat Chrysler shares closed higher for a seventh consecutive session on Monday. The stock went up 1.44% ($0.15) to $10.57, after climbing as high as $10.67, or a level not seen since October 21st 2015 ($10.70). In the week ended on January 8th the shares of the vehicle manufacturer added 14.25% to their market value compared to a week ago, which marked the fifth consecutive period of gains and also the best performance since the week ended on March 6th 2016. The stock advanced 19.06% in December to log its third consecutive month of gains and also the best performance since January 2014. For the entire 2016, the shares of the NYSE-listed manufacturer lost 0.55%.
“It is quite possible” that “we would have to withdraw” from operations in Mexico, in case of way too high tariffs, Sergio Marchionne told the press in Detroit.
In a tweet posted earlier on Monday, President-elect Donald Trump expressed his gratitude towards entities such as Fiat Chrysler and Ford Motor Company for their intention to invest in US Midwest plants.
“It’s finally happening – Fiat Chrysler just announced plans to invest $1BILLION in Michigan and Ohio plants, adding 2000 jobs,” Trump said through his Twitter account yesterday. “Ford said last week that it will expand in Michigan and U.S. instead of building a BILLION dollar plant in Mexico. Thank you Ford & Fiat C(hrysler)”, he added.
Last week Ford announced it intended to invest $700 million in a plant in Michigan over a period of 4 years. At the same time, during the weekend Fiat Chrysler revealed a plan to establish plants in Ohio and Michigan in order to manufacture new pickup trucks and SUVs.
As of 10:17 GMT on Tuesday the shares of Fiat Chrysler were gaining 0.50% (EUR 0.050) on the day to trade at EUR 10.090 at the Milan stock exchange.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, today’s levels of importance for the Fiat Chrysler stock (US trading session) are presented as follows:
R1 – $10.59
R2 – $10.62
R3 (Range Resistance – Sell) – $10.64
R4 (Long Breakout) – $10.71
R5 (Breakout Target 1) – $10.79
R6 (Breakout Target 2) – $10.82
S1 – $10.55
S2 – $10.52
S3 (Range Support – Buy) – $10.50
S4 (Short Breakout) – $10.43
S5 (Breakout Target 1) – $10.35
S6 (Breakout Target 2) – $10.32
By using the traditional method of calculation, the weekly levels of importance for Fiat Chrysler Automobiles NV (FCAU) are presented as follows:
Central Pivot Point – $10.14
R1 – $10.83
R2 – $11.23
R3 – $11.92
R4 – $12.60
S1 – $9.74
S2 – $9.05
S3 – $8.65
S4 – $8.24