Fiat Chrysler with weak guidance for 1H 2019 and with key support at 12.
The automaker said it expects results in the first half of 2019 to be down compared to 2018, in part because it will not be selling two generations of the Jeep Wrangler side-by-side, as it did in 2018. It is also planning some Wrangler production downtime to retool factories for launch of the plug-in hybrid version of the iconic off-road machine in early 2020.
The stock sold off 13% from the recent high at 15.31 to todays 13.37.
The chart pattern appears as Elliott Wave FLAT A-B-C, in which Wave C was 1.618 times Wave A. This is a typical correlation within FLAT corrections.
The pattern indicates that the stock must not fall below 12 or the major uptrend will be broken.
In this case, I would count the high at 19.85 on 1.6.2018 not as Wave B but as Wave 5 of the previous uptrend and such as a fifth wave failure.
For a confirmation of the corrective nature of the decline the stock must rise above 14, 14.50 and 15.30.
The chart will trigger medium-term and long-term SELL signals if 13 and 12 is broken.
It will trigger a medium-term BUY signal if 14.50 is cleared.
Inbetween the stock remains in a trading range.