Stellantis Surges 3.29% on Bullish Reversal and MA Crossover Amid Technical Breakout Potential

Stellantis (STLA) closed the most recent session with a 3.29% increase, marking a significant upward move against a backdrop of fluctuating volatility and mixed momentum signals. The stock’s price action over the past year reveals a dynamic interplay between bullish reversals and bearish corrections, with key levels forming around $10.32 (resistance) and $9.81 (support). Recent candlestick patterns, including a bullish engulfing formation on November 21 and a doji on November 19, suggest indecision before a sharp rally, while a descending triangle pattern between $10.20 and $10.65 indicates potential for a breakout.
Candlestick Theory
The recent 3.29% surge aligns with a bullish reversal pattern, as the price closed near the session’s high on elevated volume, suggesting strong buying pressure. Key support levels are identified at $10.32 (prior resistance-turned-support) and $9.81 (a psychological round number with multiple touches), while resistance resides at $10.65 (a recent high). The formation of a "piercing line" on November 26 and a "bullish harami" on November 25 further reinforces the likelihood of a short-term bullish bias.
Moving Average Theory
Short-term momentum appears constructive, with the 50-day moving average (approximately $10.40) crossing above the 200-day MA ($10.25), signaling a potential trend shift. The 100-day MA ($10.35) acts as a dynamic support, currently providing a buffer for further consolidation. However, the 200-day MA remains a critical threshold; a sustained close above $10.50 could validate a broader uptrend, while a pullback below $10.20 may reignite bearish momentum.
MACD & KDJ Indicators
The MACD histogram has shown a recent expansion into positive territory, with the line crossing above the signal line, indicating strengthening bullish momentum. Conversely, the KDJ indicator (Stochastic) reveals overbought conditions, with the %K line nearing 80 and %D lagging behind, suggesting a potential pullback. Divergence between the MACD and KDJ—where price makes a new high but momentum indicators fail to confirm—raises caution about a near-term reversal risk.
Bollinger Bands
Volatility has expanded in recent sessions, with the price testing the upper band at $10.68 on November 28, a level that had previously acted as a ceiling. The contraction of bands in mid-November (e.g., November 13–17) preceded a breakout, suggesting a similar pattern could recur if the current upper band ($10.70) is breached. A move below the 20-day lower band at $9.90 would signal renewed bearish pressure.
Volume-Price Relationship
Trading volume has surged during the recent rally, with the November 21 session recording 20 million shares traded, validating the price increase. However, volume has moderated in the past two sessions (November 26–28), raising questions about the sustainability of the upward move. A follow-through increase in volume on a new high would strengthen the bullish case, while declining volume could indicate waning conviction.
Relative Strength Index (RSI)
The RSI has entered overbought territory (>70) following the recent 3.29% gain, suggesting short-term exhaustion. While this does not necessarily indicate an immediate reversal, it highlights a risk of profit-taking. A drop below the 50 level would signal a return to neutral territory, whereas a sustained move above 70 could prolong the rally but may also increase divergence risks.
Fibonacci Retracement
Key Fibonacci levels derived from the year’s high ($14.28 on February 25) and low ($8.69 on August 5) include 61.8% at $11.45 and 38.2% at $11.03. The current price of ~$10.66 is approaching the 23.6% retracement level ($10.82), which could act as a near-term resistance. A break above $10.82 may target the 38.2% level, while a failure to hold above $10.20 (the 50% level) could see a retest of the 61.8% support at $9.65.

Confluence between the bullish engulfing pattern and the 50-day MA crossover suggests a high probability of continued upward bias in the short term. However, overbought RSI and KDJ readings, coupled with divergent momentum, caution against a sharp reversal. The key watchpoints are $10.65 (resistance) and $10.20 (support), with volume dynamics and Bollinger Band behavior offering critical clues about trend sustainability. A break above $10.70 would confirm a bullish breakout, while a close below $10.32 may trigger a retest of the $9.81 support level.