Stellantis N.V. (STLA) Technical Analysis

Price Action Analysis

Overview

• The longer-term weekly perspective shows a persistent downtrend over the past two years, with the price trading well below former highs and a sequence of lower highs and lower lows. In the most recent action, the price has moved into a lower price regime and currently sits in the single-digit area, signaling renewed downside pressure.
• The daily chart indicates a continuation of intensified selling pressure, with the price currently positioned around the low $7s. The most recent action features sharp downside moves followed by limited follow-through on rallies, suggesting lack of sustained demand at higher levels.
• Candlestick texture in the daily time frame points to a mix of indecision and continued selling on recent sessions, with occasional intraday bounces that fail to hold above nearby resistance clusters.
• Key observation: price has breached important mid-range support bands and is trading below major moving averages, implying a bearish-to-neutral setup unless a meaningful bullish reversal occurs.

Support and Resistance

• Immediate support: around the $7.00 level (recent intraday lows and the trendline area). The price has tested this region in the current session and near-term history.
• Near-term resistance: in the $9.50–$10.50 zone, aligning with prior consolidation highs and the proximity to the 50-day moving average when price was above this area.
• Longer-term reference: the price is well below the 50-day and 200-day moving averages, reinforcing the bearing downside context.

Candlestick Structures and Volume Behavior

• Recent candles show wide-range moves with relatively modest follow-through on rallies, typical of a supply-dominant environment.
• Volume tends to spike on down days, consistent with distribution and stronger selling pressure; rallies are often on lighter volume, indicating lacking conviction behind bounces.

Trendline context (drawn levels)

• Support trendline: 7.00
• Resistance trendline: 9.50

Notes on the attached charts

• The daily action sits at a historically weak price area, with the near-term path contingent on demand re-emerging or a test of deeper support levels.
• The weekly backdrop confirms the downtrend tilt, raising the bar for any meaningful reversal signal.

Technical Indicators

This section summarizes momentum, trend strength, and potential reversal signals based on the latest readings.

Indicator	Current Value	Interpretation
Price	$7.28	Last traded level; below key moving averages; bearish baseline
50-day MA	$10.70	Price is well below; serves as resistance on rallies
200-day MA	$10.10	Price well below; confirms long-term bearish bias
RSI (14)	25.0	Oversold territory; potential for a short-term bounce if demand materializes
MACD (12,26,9)	MACD: -0.50; Signal: -0.30; Histogram: -0.20	Negative momentum; potential for a near-term reversal if MACD crosses above its signal with price stabilization

Key observations from indicators

• The price is trading decisively under both major moving averages, underscoring a bearish to neutral regime unless price action proves otherwise.
• The RSI sits in oversold territory, which can precede a relief bounce in a risk-off environment, but requires corroboration from price action and volume.
• MACD remains negative with no immediate bullish cross, indicating current momentum is skewed to the downside, though small reversals are possible if price stabilizes near support.

Momentum and Volume Context

• The combination of a declining price, negative MACD, and oversold RSI suggests macro-downside momentum with limited near-term upside conviction.
• Volume spikes on downside days reinforce the bearish balance of power; volume does not display consistent accumulation on rallies, which would be a more constructive sign for reversal.

Volume & Momentum Analysis

• Volume patterns have been supportive of the recent price action in the sense that selling days often show heightened volume, indicating distribution and participation by sellers.
• Bulls have not shown a strong, sustained volume-based push to reclaim levels above the 50-day/200-day moving averages, keeping the bias tilted to the downside.
• The current oversold RSI could precede a short-term bounce if price management allows a stabilization near the 7.00 area and if buyers enter with confidence. However, a deeper test below 7.00 would risk accelerating downside toward the next lower support band.

Trendlines and Zones in play

• The horizontal support around 7.00 has been highlighted as a near-term key level. The charted trendline at 7.00 confirms the area as critical support.
• The horizontal resistance around 9.50 acts as a near-term ceiling for rallies, with the 50-day MA nearby as an additional cap in any attempt to reclaim momentum.

Key Buy/Sell Levels

Current price: 7.28

• Zone 1: Immediate buy zone around 7.00–7.50

  • Has this zone been touched? Yes, the lower boundary (7.00) has been touched in recent sessions.
  • Distance from current price: Within the zone; current price sits in this band.
  • Rationale: The level aligns with a strong near-term support cluster and the drawn trendline; oversold RSI implies potential for a short-term bounce if demand emerges, especially with any positive price-action catalysts or stabilization in volume.

• Zone 2: Deeper buy zone around 6.50–6.90

  • Has this zone been touched? No, not yet in the very recent price action.
  • Distance from current price: 7.28 – 6.90 = 0.38 dollars; ~5.22% below current
  • Rationale: A deeper support cushion where price could pause if selling intensifies or if there’s a liquidity event that drives buyers. A test of this zone would also potentially validate a larger consolidation base, but would require a notable turn in momentum.

• Zone 3: Reversion-trigger zone around 9.50–10.50 (for potential reversal setup)

  • Has this zone been touched? Not recently; price would need a meaningful rebound into this area.
  • Distance from current price: 9.50 – 7.28 = 2.22 dollars (+31.0%); 10.50 – 7.28 = 3.22 dollars (+44.1%)
  • Rationale: If price starts to reclaim the 50-day MA (~10.70) and breaks above the 9.50–10.50 resistance cluster with increasing volume, this zone could mark a shift toward a more constructive setup.

Trendline usage for buy considerations

• The two drawn lines (7.00 and 9.50) provide a rough corridor of near-term support and resistance. A disciplined approach would consider entries closer to 7.00–7.50 if price holds, with a view to scaling up if price stabilizes and volume supports a rebound toward 9.50–10.50 and the moving averages.

Notes on the current price-in-context

• The price is significantly below both the 50-day and 200-day moving averages, indicating that any upside moves would need to clear substantial overhead resistance and validate momentum with higher volume.
• Oversold RSI implies potential for a short-term bounce, but confirmation through price action (a reclaim of support-turned-resistance around 7.50–8.50, followed by a move into the 9.50–10.50 zone) would be required to shift bias.

Trendline extension (visual guidance)

• The trendlines drawn at 7.00 and 9.50 have been extended to provide a forward-looking frame of reference for near-term price action.

Technical Outlook & Summary

• Price Action Context
  • Current setup shows a bear-leaning landscape with price confined below major moving averages, testing a key near-term support around 7.00. The long-run trend remains downward, with little durable evidence of a sustained reversal at present.
• Volume Analysis
  • Selling days tend to show higher volume, indicating distribution and momentum behind declines. Buying days have not demonstrated the same level of conviction or volume support, leaving the downtrend in control unless a meaningful shift occurs.
• Technical Signals
  • Bearish underpinnings from price relative to moving averages and MACD.
  • Oversold RSI suggests a potential short-term bounce if price stabilizes near 7.00 and buyers come in with supportive volume.
  • Break of 7.00 could open downside risk toward the next substantial support around 6.50–6.90; a sustained move back above 9.50–10.50 with volume would be the key trigger for a more constructive setup.
• Buy Zones and Risk
  • Zone 1 (7.00–7.50): Immediate area currently within reach; touched at 7.00; favorable for a cautious bite if price shows a bullish reversal candle and higher volume.
  • Zone 2 (6.50–6.90): Deeper support; not yet tested; offers a more favorable risk-reward if price drops there and buyers step in.
  • Zone 3 (9.50–10.50): Reversal hurdle; requires a clear reclamation of the 50-day MA and a strong volume spike to validate a trend change.

Notes for traders

• Any long entry should be contingent on a clear bounce signal: a daily close above approximately 8.50–9.00 with confirming higher volume, followed by a move into the 9.50–10.50 region and eventual re-cross of the moving averages.
• A breakdown below 7.00 would strengthen downside risk toward 6.50–6.90, with potential for further decline if macro conditions worsen or if liquidity dries up.

If you’d like, I can refine the buy/sell levels with additional layers (e.g., intraday levels, alternate timeframes like 4h for quicker entries, or a quick risk-managed plan with stop-loss suggestions).