Stellantis Stock Faces Downturn Following CEO’s Sudden Resignation

Uncertainty Strikes as Shares Plummet More Than 40% This Year

Shares of Stellantis N.V. STLA experienced a decline on Monday, following the unexpected resignation of CEO Carlos Tavares. Just two months prior, Tavares had indicated he would retire in 2026, leaving many investors uncertain about the future.

The chart shows that Stellantis shares have fallen over 40% this year. Nevertheless, there appears to be a potential bottom forming, which could make it our Stock of the Day.

Markets typically react poorly to uncertainty. This ongoing situation means anxious investors may choose to continue selling, putting further downward pressure on Stellantis shares.

However, seasoned traders often recognize key price levels that may create profit opportunities. When a stock declines and approaches a support level, it is likely that the selloff could come to an end. Additionally, stocks often bounce back after hitting support thresholds.

The chart indicates that the $11.50 level provided support for Stellantis in June and July, suggesting this price point might serve as a foundation once again.

Support levels can hold due to what is known as “seller’s remorse.” Traders who sold their shares at the support price may regret their decision if the stock rises quickly afterward.

Some opt to repurchase shares at the original sale price. When they place buy orders at that level, it can establish a new support point, which has been observed at the $11.50 mark for STLA.

Historically, stocks tend to rally after reaching support levels, which may provide potential profit opportunities in the near future. This often occurs when investors who helped establish the support through buy orders start getting anxious, knowing that sellers will seek the highest offers.

To avoid being left out, buyers may increase their bid prices, prompting others to follow suit. This behavior can create a snowball effect, possibly pushing the shares into an uptrend.

While it might be premature to take a position in Stellantis, some astute traders will be watching for a rally and a chance to profit, should the stock approach the significant support level and potentially reverse.

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