Ferrari’s (NYSE:RACE) Stock Rally Not Over

Ferrari’s (NYSE:RACE) Stock Rally Not Over

Ferrari’s (NYSE:RACE) Stock Rally Not Over

$RACE

Ferrari (NYSE:RACE) stock continued in consolidation mode last week, finishing at 110.74, +0.6% on the week.

The company’s stock has risen 90% YTD, falling about  3.% in September, after marking an all-time high a 118.10 on 6 September, but was turned back at the major resistance where profit taking happened.

Taking a look at some of the reasons, as follows:

After marking the high on 6 September, on 7 September, Morgan Stanley (NYSE:MS) downgraded its rating on Ferrari stock from “overweight” to “underweight” noting that a Morgan Stanley analyst was concerned about Ferrari’s valuation, which might have been the Key reason for the short lived sell off, it was simply profit taking and the Key support held and moved up solidly to 110.97/share, now a Fat Green Line, indicating that Morgan’s un-named analyst’s call was self serving to the House.

Note: Ferrari’s V12 engine car sales have risen over the last few Quarters, which boosted its profitability. In general, Ferrari’s profit margins from V12 engine cars are stronger than those from V8 engine cars.

Ferrari’s margins are better in the extreme Vs those of all automakers, including: Fiat Chrysler (NYSE:FCAU), Ford Motor (NYSE:F), and General Motors (NYSE:GM).

Technically I see no signs of reversal in Ferrari stock in here.

Its 1st support is very Strong at 110.97, and a clear break of its all-time high of 118.10 should attract fresh buying near term, driving the stock to 125.96 and higher.

Tune out the Noise.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 113.49 19 September 2017 1.16 112.91 113.94 112.75 530,300
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Bullish (0.39) Neutral (0.22) Very Bullish (0.52) Bullish (0.42)

Stay tuned…

 

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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.

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