Ferrari (NYSE:RACE) Shares Consolidating at Major Support, Positive Traction

Ferrari (NYSE:RACE) Shares Consolidating at Major Support, Positive Traction

Ferrari (NYSE:RACE) Shares Consolidating at Major Support, Positive Traction


After falling for 2 weeks running, Ferrari (NYSE:RACE) stock turned positive on the week ended 24 November, finishing at 113.71 and showing weekly gainer of 4.2%.

As of 24 November RACE lost -5.0% MTD, while maintaining an impressive YTD gainer of 95.6%.

Ferrari Stock Turned Positive in the Week Ended November 24

Last week, Ferrari stock tested 1st resistance near 113.90, which should continue to act as 1st resistance this week.

On 8 November the stock price fell below its 50-Day SMA, but close above that mark Friday, 24 November, signaling underlying positive sentiment.

The 14-Day RSI mark was 53.3, indicating some minor strength in momentum.

Only a clear brake of Key support near 107.0 would trigger a sell-off in coming weeks.

In the 1st week of November, Ferrari released its Q-3 Y 2017 results, reporting EPS of $0.86/share. This reflected a 25.4% rise over its earnings in the same frame last year.

Ferrari’s Q-3 Y 2017 revenues rose 6.7% Y-Y, and its shipments to North America also rose.

Higher global volume and improved product mix helped Ferrari grow its profit margins in the Quarter.

Ferrari’s profit margins much higher than those of legacy carmakers Fiat Chrysler Automobiles (NYSE:FCAU), Ford Motor (NYSE:F), and General Motors (NYSE:).

Ferrari only makes luxury Supercars, which yield higher profit margins than mass-market vehicles.

During Q-3 Y 2017, Ferrari’s management revised its Y 2017 adjusted EBITDA guidance upward. Now, the company expects its Y 2017 EBITDA to be EUR 1-B, compared with its earlier guidance of EUR 950-M.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 111.79 28 November 2017 -0.01 112.58 112.72 111.64 285,408
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Neutral (-0.04) Neutral (-0.12) Neutral (-0.12) Neutral (0.12)

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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