Ferrari (NYSE:RACE) Stock, Watch Key Support and Resistance

Ferrari (NYSE:RACE) Stock, Watch Key Support and Resistance

Ferrari (NYSE:RACE) Stock, Watch Key Support and Resistance


Ferrari stock (NYSE:RACE) traded on a mixed with a Bullish bias during the week ended 22 September and finished at 113.47 with a weekly gainer of 3.1%.

The company’s stock has risen 95.3% YTD, but has fallen 0.7.5% MTD in September.

Support and Resistance

Last week, Ferrari stock made a failed attempt to breach a resistance level near 113.70 for 4 days runningg, which reflected the fading strength of the Bulls.

This week 112.99 is a major resistance.

HeffX-LTN’s Support/Resistance for RACE
Type Value Conf.
resist. 125.40 1
resist. 118.09 2
resist. 112.99 17
supp 107.61 5
supp 98.72 3
supp 94.90 3
supp 91.85 2
supp 89.25 5
supp 85.77 6
supp 82.56 2
supp 73.11 11

On the Southside, this price action has tested a horizontal support near 107.61 seem 2X in September. Therefore, any Southside violation of this support area could turn investor sentiment to negative near term.

Ferrari stock posted an all-time high of 118.10 on 6 September 2017.

According to a Reuters report published on 7 September, Morgan Stanley downgraded its ratings on Ferrari stock from “overweight” to “underweight.” Morgan Stanley’s  analysts become concerned with valuation of Ferrari. This could be the primary factor that reversed the trend in Ferrari stock in September.

Ferrari has reported strongly positive EPS growth in the last 8 straight Quarters. This consistently solid performance could be the Key factor that is challenging the Bears.

Ferrari’s sales of V12-engine cars rose during the last 3 Quarters, which helped boost its profitability. In general, the company’s profit margins from V12 cars can be higher compared to its margins from V8 models.

Ferrari’s margins are far and away better than all of the mainstream automakers including Ford, GM, and Fiat-Chrysler

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 110.83 27 September 2017 1.85 109.2 110.86 109.05 364,414
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Neutral (0.11) Neutral (-0.04) Neutral (0.00) Bullish (0.38)

Stay tuned…

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