Ferrari (NYSE:RACE) Stock Could ‘Race’ into New Year

Ferrari (NYSE:RACE) Stock Could ‘Race’ into New Year

$RACE

The iconic Italian carmaker Ferrari (NYSE:RACE) was unable to get a lift this sector member Ford’s (F) big electric SUV announcement.

RACE finished + 0.16 at 164.41, but the stock still flashing a Bullish signal that could drive to new record highs. 

More specifically: RACE’s recent Nov. 4 record high of 172.88 comes on historically low implied volatility (IV) — a combination that has been Bullish for the stock in the past.

According to data from Schaeffer’s Senior Quantitative Analyst there have been 8 other instances when Ferrari stock was trading within 2% of its 52-wk high, while its Schaeffer’s Volatility Index (SVI) sat in the 20th annual percentile or lower, as it the case with RACE’s current SVI of 20%, in the 3rd annual percentile. 

The data shows that 1 month after those 8 signals, RACE was up 5.3%. From its current mark, another move of that magnitude would put the stock above 174 for a new record high. The stock is up 66.5% in Y 2019, and this month’s recent consolidation found a floor at the 165 level, an area that coincides with its 10-Day MA.

Daily Stock Chart RACE
Daily Stock Chart RACE

A shift in analyst sentiment could give RACE more room to run.

Currently, around 38% of analysts in coverage rate Ferrari a “hold,” and the consensus 12-month price target of 172.87 is a 4% premium to its current price.

Ferrari is the Aristocrat of the automotive sector.

Enzo Ferrari’s iconic Italian Supercar manufacturer claimed the title according to the latest Brand Finance Global 500 2019 report launched at the World Economic Forum in Davos.

HeffX-LTN overall technical outlook for RACE is Very Bullish, overhead resistance is 166.19 and Key support at 164.25, as all Key indicators turned Very Bullish and the stock has established long term support ahead of this breakout.

Ferrari finished at 164.41, +0.19 Wednesday in NY.

Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I see it at 200+/share in that frame.

Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I see it at 200+/share in that frame.

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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