Ferrari (NYSE:RACE) Resumes Rally in October

Ferrari (NYSE:RACE) Resumes Rally in October

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.

It’s worth noting that Ferrari’s profit margins are much higher than mainstream automakers: Fiat Chrysler (NYSE:FCAU), Ford (NYSE:F), and General Motors (NYSE:GM).

Symbol Last Trade Date Change Open High Low Volume
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)

Stay tuned…

The following two tabs change content below.

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

You must be logged in to post comments :