Stellantis (STLA) stock returns to test major resistance at €15

Stellantis stock should resume its downtrend

The stock of automaker Stellantis (STLA) has stumbled below key resistance in recent days after rebounding 35% in a short month on market participants’ renewed risk appetite.

Risk appetite could strengthen in the short term, but the fundamentals remain against a major change in the underlying trend. The outlook remains bearish due to the global economic slowdown and tighter borrowing conditions. Indeed, like the real estate sector, the automotive sector is highly dependent on financing conditions since purchases are mostly made on credit.

The extremely rapid and significant monetary tightening by the main central banks around the world – except in China – is therefore a real headwind for the automotive sector and should continue to be so in the coming quarters, especially if inflation continues to be at very high levels.

The outlook for the auto sector will start to improve if the global economic outlook improves or if central banks cut their key rates. In the meantime, rebounds in procyclical stocks on the stock market are likely to be only temporary.

Stellantis (STLA) stock price daily chart – key levels

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