Peugeot: Technicals point to recovery
Nicolas Suiffet September 15, 2020 5:20 PM
Peugeot and Fiat Chrysler Automobiles have decided to amend certain terms of their merger agreement in order to strengthen their balance sheet in the face of the health crisis.
Peugeot and Fiat Chrysler Automobiles have decided to amend certain terms of their merger agreement in order to strengthen their balance sheet in the face of the health crisis, "while preserving the economic value and fundamental balance of the initial merger agreement". PSA's 46% stake in equipment maker Faurecia will be distributed to all shareholders of the new entity, named Stellantis, and FCA will reduce its exceptional dividend to €2.9 billion instead of the €5.5 billion envisaged.
From a technical point of view, Peugeot may post a rebound as prices escaped from an ascending triangle pattern by pushing above the threshold at 15.7E. The daily Relative Strength Index (RSI, 14) has broken above a declining trend line and is not overbought. Bollinger bands are widening. This could indicate that a short term recovery is on the way. Readers may want to consider the potential for opening Long positions above the threshold at 13.8E with 18.5E and 19.7E as targets. Alternatively, a push below 13.8E would invalidate the bullish view and would call for a slump towards 12.25E and 10.74E.
Source: GAIN Capital, TradingView
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.