Ferrari (NYSE:RACE) Resumes Rally in October
Ferrari stock (NYSE:RACE) traded on slightly Bearish note in the week ended 29 September 2017, and finished at 110.48 with a weekly dip of 2.6% to end a month of consolidation of its remarkable YTD Bull run.
RACE declined 3.5% in September. But maintains its YTD rise of 92.0% Vs a 12.5% rise for the S&P 500 (NYSEArca:SPY) so far in Y 2017.
The stock is up about 2.5% on the month so far finishing at 114.13 Tuesday in New York
On 6 September 6, 2017, Ferrari stock posted an all-time high of 118.10, which now looks like minor resistance, the 1st resistance on my indicator is 116.06.
Having broken the prior resistance turned support at 112.38 Monday fresh buying has come into Ferrari stock.
The stock price tested a swing support level near 108.50 twice in September. Its 14-day RSI indicator was at 58 on 2 October, suggesting strength in the momentum.
A Reuters report on 7 September 2017, said that Morgan Stanley downgraded its ratings on Ferrari stock from “overweight” to “underweight.”
A report said that Morgan analysts have become concerned about Ferrari’s valuation. That could be why the trend in Ferrari stock reversed in September.
Ferrari has reported positive EPS growth in the last 8 Quarters. This consistent solid performance is now challenge the Bears and has help Ferrari resume its rally in October.
|NYSE:RACE||114.13||3 October 2017||1.75||112.58||114.17||112.51||371,508|
|HeffX-LTN Analysis for RACE:||Overall||Short||Intermediate||Long|
|Bullish (0.28)||Neutral (0.19)||Bullish (0.31)||Bullish (0.33)|