Ferrari loses F1 title but stock holds steady. Stellantis faces total collapse
09/28/2024 05:58 AM
Yesterday, the Ftse Mib index came close to reaching 34,000 points before closing slightly down. This performance mirrored the decline in Ferrari and Stellantis stocks, both of which saw decreases in the stock market.
Ferrari in Decline in September
Ferrari's stock (RACE) hit an all-time high of €450.30 at the end of August. Since then, it has entered a retracement phase, currently standing around €423. This drop has pushed RACE into negative territory for the month, with a decrease of 0.64%. Despite this decline, the stock remains well in the green for the year, with an impressive 38% gain. The trend appears to be bullish, but the price has stalled at the €430 resistance level. To resume a strong upward trend, the stock needs to break through this key level. On the downside, it is crucial that the price holds the €410 support level; otherwise, it could fall to €393, marking a further decline.
Stellantis: A 50% Drop from the March High
Stellantis (STLAM) continues its bearish phase. Currently trading around €13.70, the stock is experiencing its fifth consecutive month of decline. This downtrend has turned into a significant collapse, especially when considering that in March, STLAM reached its all-time high of €27.35. At its current value, the total drop from that peak is approximately -49.75%.
Analysis and Outlook
The ongoing weakness in Stellantis stock can be attributed to a number of factors, including global economic uncertainties, tensions within the automotive sector, and challenges tied to the transition to electrification. Investors remain cautious, waiting for signs of a trend reversal or positive news that could favorably impact the stock. For both stocks, support and resistance levels will be crucial in the short term. Analysts recommend closely monitoring these technical indicators to spot potential investment opportunities or risks to mitigate.
Conclusions
While Ferrari finds itself in a delicate phase with potential signs of recovery, Stellantis is facing a more complex situation, having lost nearly half its value since its March peak. The market will continue to keep a close eye on the strategies both companies implement to tackle the current and future challenges in the automotive industry.
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