Ferrari (NYSE:RACE) gaped open higher and held the 4.06% gainer Tuesday, as the broad market got hammered, with all of the major US stock indexes down more than 1% on the day, and all 11 S&P 500 sectors finishing in the Red.
The stock rose after the iconic Italian luxury Supercar maker beat earnings per share and revenue expectations. It comes after shares showed plenty of weakness Monday, leaving investors unsure about the stock heading into earnings. And Ferrari supersized as usual.
Now the Maranello Outfit’s stock is seeing breakout as the resistance is light Should it do so, Ferrari will then ‘race’ to fresh all-time highs.
But, that resistance at 143.55 could cap the stock short term, particularly if the broader market remains under pressure.
Ferrari is outperforming all members in the automotive sector, as revenue grew 13% Y-Y.
By comparison BMW saw a decliner of 90 bpts, General Motors (NYSE:GM) +1.6%, and Ford flat on the day.
The Candlestick Chart
Ferrari’s shares are just below 140, which has tempered the rallies in RACE stock YTD. Should it do so again, look for these Key MAs: the 50-Day and 10-Wk near 134.69 for strong support.
See a close above 140 as the breakout trigger, which puts its 52-wk high at 149.85 as the target.
Ferrari is the Aristocrat of the automotive sector.
The 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 Bullish to Very Bullish, there is light resistance now at 139.91, and strong support at 134.69, all of our Key indicators are Bullish-Very Bullish in here.
Latest posts by HEFFX Australia (see all)
- Heffx Update: FX Outlook - May 26, 2020
- China abandons GDP target for the first time amid coronavirus threat? - May 25, 2020
- Euro: USD/EUR (EUR=X) Some dollar volatility - May 25, 2020