Stellantis Jumps 5.74% As Technicals Signal Rebound From Support

Stellantis (STLA) advanced 5.74% in the most recent session, closing at 10.13 after trading between 9.78 and 10.14, signaling a strong rebound from the prior session's sell-off. This analysis evaluates key technical dynamics using multiple methodologies.
Candlestick Theory
The three-session pattern reveals a volatile sequence: a long bullish candle (10.34 close) on July 23, followed by a bearish engulfing candle (9.58 close) on July 24, and a robust bullish candle (10.13 close) on July 25. This structure suggests potential exhaustion of the downside near the 9.58 support level. Immediate resistance is now established at the July 23 high of 10.39, while the session low of 9.78 provides near-term support. A decisive break above 10.39 could signal renewed bullish momentum.
Moving Average Theory
Using historical closes, the 50-day moving average (MA) currently hovers near 10.05, with the 100-day MA at approximately 10.45 and the 200-day MA around 10.80. The current price trades above the 50-day MA but below the 100-day and 200-day MAs, reflecting mixed signals. The 50-day/100-day death cross in early July remains intact, favoring the intermediate-term bearish trend. Sustained trade above the 100-day MA would be necessary to invalidate this pattern.
MACD & KDJ Indicators
The MACD histogram shows tentative stabilization after recent negative momentum, with the signal line flattening near -0.15. A bullish crossover appears possible if momentum extends. The KDJ oscillator exited oversold territory (K=22/D=24 on July 24) to current readings near K=50/D=40, indicating recovering momentum. Neither indicator shows overbought conditions, leaving room for continued near-term upside potential without immediate exhaustion signals.
Bollinger Bands
Bands contracted sharply in late June (width ~0.35) before expanding to ~0.45 during the July volatility spike. Price currently tests the upper band near 10.15, coinciding with resistance. A confirmed close above this band would signal breakout potential, while rejection could trigger reversion to the 20-day moving average midline near 9.90. Band expansion supports heightened directional conviction on breakouts.
Volume-Price Relationship
Volume surged to 56.2 million shares during the July 23 rally but remained elevated at 30.8 million during the subsequent sell-off, confirming bearish conviction. The July 25 rebound occurred on reduced volume (22.6 million), introducing sustainability concerns. Volume divergence suggests the recovery requires confirmation via increased participation to validate bullish reversal potential.
Relative Strength Index (RSI)
The 14-day RSI rebounded from near-oversold (33 on July 24) to a neutral 53 reading. While this exit from oversold territory supports the rebound narrative, the indicator lacks overbought pressure (current reading remains below 70). The RSI’s position suggests room for continued upside, though traders should monitor for divergence if prices advance without corresponding RSI strength.
Fibonacci Retracement
Drawing from the April low (8.53) to July high (10.54), key retracement levels include: 23.6% at 9.77, 38.2% at 9.28, and 50% at 9.54. The July 24 low (9.58) tested the 38.2%–50% support zone (9.28–9.54), with the subsequent rebound validating this area as significant. The recovery now challenges the 23.6% resistance (9.77), with clearance potentially enabling a retest of the 10.54 swing high.
Confluence and Divergence
Confluence emerged at the 9.58 support, aligning with the 38.2% Fibonacci level and the Bollinger Band lower boundary, while RSI divergence from price lows signaled waning bearish momentum. However, negative volume divergence during the rebound introduces sustainability concerns. Crucially, resistance convergence exists near 10.15–10.39, combining the July 23 high, Bollinger upper band, and psychological resistance. Overcoming this zone requires volume confirmation to establish conviction.
Probabilistic Conclusion: Technical indicators suggest Stellantis is recovering from oversold conditions, supported by Fibonacci positioning and momentum stabilization. However, volume discrepancies and resistance density near 10.15–10.39 warrant caution. Traders should monitor volume confirmation on upside breaks and the 9.58 support integrity to gauge trend continuity.