Stellantis Jumps 7.75% On Bullish Candlestick Breakout As Volume Doubles

Candlestick Theory
Stellantis (STLA) exhibits a strong bullish reversal pattern with three consecutive white candles (June 6–10, 2025), culminating in a 7.75% 3-day surge. This "Three White Soldiers" formation near the $9.37 April support level confirms robust buyer commitment. Key resistance emerges at $10.50 (June 10 high), while support holds at $9.91–$9.96 (consolidation zone from early June). The recent break above the descending trendline from the March $18.31 peak signals potential trend acceleration.
Moving Average Theory
The 50-day MA ($10.80) hovers above the 100-day MA ($11.20), but both remain below the 200-day MA ($13.45), indicating lingering long-term bearish pressure. However, the current price ($10.43) has decisively breached the 50-day MA, suggesting strengthening short-term momentum. A potential "golden cross" (50-day crossing above 200-day) remains distant but would gain likelihood if the rally extends toward $12. Near-term resistance aligns with the 100-day MA at $11.20.
MACD & KDJ Indicators
MACD shows a bullish crossover (June 9–10), with histogram bars expanding positively, confirming upward momentum. KDJ registers an overbought signal (K: 85, D: 78, J: 99), typically a caution for pullbacks. However, the KDJ’s steep ascent from oversold territory in late May aligns with strong price recovery, reducing immediate reversal risks. Divergence is absent, supporting continued near-term strength.
Bollinger Bands
Volatility spiked on June 10 as price surged to the upper band ($10.50) after weeks of band contraction (late May–early June). This breakout from a "Bollinger squeeze" suggests a new impulsive phase. Sustained closes above the 20-period moving average midline ($9.95) reinforce bullish control. Band expansion may continue if volume supports further gains.
Volume-Price Relationship
June 10’s 4.72% surge occurred on 22.18 million shares—over double the 30-day average—validating breakout conviction. The three-day rally volume steadily increased, confirming accumulation. However, prior rallies (e.g., April 9–14) saw similar volume spikes followed by retracements, warranting monitoring for sustainability. Resistance at $10.50 coincides with a high-volume node from late May.
Relative Strength Index (RSI)
The 14-day RSI (62) is neutral but climbing, with momentum confirming recent highs. While approaching overbought territory (>70), room for upside persists given the strong volume-backed breakout. Prior overbought readings (e.g., April 14: RSI 75) preceded pullbacks, highlighting the need for vigilance.
Fibonacci Retracement
Applying Fib levels to the decline from $18.31 (March 25) to $8.53 (April 8) identifies key retracement zones: 38.2% ($12.20), 50% ($13.42), and 61.8% ($14.64). Current price action faces confluence resistance at $10.50–$10.57 (23.6% Fib and recent highs). A decisive break above may target the 38.2% level ($12.20), though the 200-day MA at $13.45 presents a major technical hurdle.
Confluence & Divergence
Confluence supports bullish near-term bias: The candlestick breakout, MACD crossover, volume surge, and Bollinger expansion align, with RSI/momentum confirming strength. No significant bearish divergences appear. However, KDJ overbought conditions and the $10.50 resistance cluster (Fib/psychological/historical volume) may trigger short-term consolidation. A close above $10.50 could propel STLA toward $11.20 (100-day MA), while failure risks a retest of $9.90–$9.96 support.