Fiat Chrysler Automobiles NV (NYSE: FCAU) shares rose on Tuesday Nov 22 with lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, The Dow Jones Industrial Average opened opened higher, trading above 19,000 for the first time ever, while the S&P 500 traded above 2,200 shortly after the opening bell on Tuesday.
The S&P 500 SPX, +0.17% opened 5 points, or 0.2%, higher at 2,202. The Dow Jones Industrial Average DJIA, +0.20% added 45 points, or 0.2%, to 19,002. The Nasdaq Composite COMP, +0.25% began the session up 16 points, or 0.3%, at 5,385.
Analysts at Berenberg Bank initiated coverage on Fiat Chrysler Automobiles NV (NYSE: FCAU) stock, rating the company at Hold. The company currently has a rating of Hold on the shares. As a means of comparison, a number of other analysts have issued reports on the company recently, and Fiat Chrysler Automobiles NV has secured a consensus one-year price target of $9.04, above the opening price of $7.64, a difference of 11.85 percent. Fiat Chrysler Automobiles NV stock has a 52-week high of $9.51. Changes in price targets are not uncommon as analysts and brokerage firms will issue periodic updates after beginning or initiating coverage.
Shares of Fiat Chrysler Automobiles NV (NYSE: FCAU) opened at $7.64 on Tuesday trading between $7.63 and $7.68, and last traded at $7.63, which is a jump of $0.09 or 1.19% over the previous closing price.
Fiat Chrysler Automobiles NV (NYSE: FCAU) currently has a market cap of 9.84B.
Fiat Chrysler Automobiles NV (NYSE: FCAU) Average Daily Trading Volume
The stock’s average daily volume is 7,899,860 shares out of a total float 1,253,871,000 and some 757,800 shares traded hands yesterday, below normal. Momentum traders often use swings in trading volume to identify heavy volume accumulation or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
As with all potential breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to indicate that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Fiat Chrysler Automobiles NV (NYSE: FCAU) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
Traders can make more effective decisions on trades when they follow the activity of professional investors.
Trades for Fiat Chrysler Automobiles NV (NYSE: FCAU) have ranged from $5.45 – 9.51, and the stock now has a 50-day MA of $6.84 and 200-day MA of $6.76. Today’s last price is 19.80%% lower than the 52 week high of $9.51.
Earnings growth is a crucial factor to research when buying stocks and investors look for companies that have increased their earnings by at least 25% for a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.