Stellantis Shares Drop 3.15% To 9.52 As Bearish Technicals Signal More Downside

Stellantis (STLA) shares declined 3.15% to close at 9.52, extending losses for the third consecutive session with a cumulative 6.02% decline. This downtrend is examined through multiple technical frameworks below.
Candlestick Theory
Recent price action reveals three consecutive bearish candles with consistent lower highs and lows, confirming the active downtrend. The August 22 bullish candle (high: 10.19, close: 10.13) establishes a key resistance zone at 10.19-10.20. Immediate support is evident near the August 27 low of 9.45, aligning with the psychological 9.50 level. A decisive break below 9.45 may accelerate selling pressure toward the August 7 swing low of 9.10.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bearish stacked configuration with the price trading below all three. With the 50-day MA near 9.85, the 100-day MA at 10.10, and the 200-day MA near 10.60, this arrangement signals entrenched bearish momentum. The absence of any golden cross reinforces the sustained downtrend.
MACD & KDJ Indicators
The MACD histogram remains in negative territory, with the signal line dominating the MACD line, confirming bearish momentum. However, the KDJ oscillator shows %K and %D lines converging near oversold levels, hinting at potential near-term exhaustion. No bullish divergence is yet visible, suggesting downward pressure may persist.
Bollinger Bands
Bands expanded significantly during the late-August decline, reflecting heightened volatility. The price closed near the lower band (approximately 9.40) on August 27, implying an oversold condition. Contraction from current levels would signal reduced volatility and potentially precede a technical rebound.
Volume-Price Relationship
Distribution patterns validate the bearish move, with August 27 volume (13.2M shares) exceeding the 10-day average. This down-day volume expansion confirms conviction in the breakdown. The August 22 rally on high volume (16.3M shares) now serves as resistance validation.
Relative Strength Index (RSI)
The 14-day RSI computes to approximately 28, firmly in oversold territory. While this may indicate potential for a relief bounce, the RSI has remained below 40 for six sessions, warning that oversold conditions can persist during strong downtrends.
Fibonacci Retracement
Using the July 23 high (10.39) and August 7 low (9.10) as anchor points, the 23.6% retracement at 9.40 aligns precisely with the August 27 low of 9.45, creating a technical support confluence. The 38.2% level at 9.59 and 50% level at 9.75 serve as immediate resistance barriers should a rebound materialize.
Confluence and Divergence
Confluence exists at the 9.40-9.45 zone, where Fibonacci support, Bollinger lower band, and oversold RSI readings intersect, suggesting this region may trigger technical buying. However, bearish confirmation dominates through moving average alignment, MACD momentum, and volume distribution. No significant divergence between price and momentum indicators currently weakens the case for immediate reversal. The technical structure points to further downside risk below 9.40, with resistance firmly established near the moving averages at 9.85-10.10.