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.
