Monster Candle in Ferrari
Ferrari’s chart has all kinds of interesting things happening.
The main thing today is the large bullish engulfing candle on heavy volume. RACE tried to open at a low for the week and instantly got bought.
Next, the October 6 candlestick initially looked like a win for the bears. But prices quickly returned above $180, resulting in something of kicker pattern: a false breakdown followed by a rebound.
Third, RACE has held around the same area where it peaked in February and consolidated in July before breaking out. Is old resistance new support?
Finally, there’s confluence with the rising 100-day simple moving average (SMA).
Fundamentally, analysts are getting more bullish on RACE and carmakers in general. This week saw price-target increases by Bank of America and UBS. The narrative is similar to housing: Existing vehicles are old and prices are rising. Covid or not, there’s a widening sense the industry is recovering – especially with help from China.
Those factors could also provide a tailwind for RACE into its next quarterly report on November 3.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
The main thing today is the large bullish engulfing candle on heavy volume. RACE tried to open at a low for the week and instantly got bought.
Next, the October 6 candlestick initially looked like a win for the bears. But prices quickly returned above $180, resulting in something of kicker pattern: a false breakdown followed by a rebound.
Third, RACE has held around the same area where it peaked in February and consolidated in July before breaking out. Is old resistance new support?
Finally, there’s confluence with the rising 100-day simple moving average (SMA).
Fundamentally, analysts are getting more bullish on RACE and carmakers in general. This week saw price-target increases by Bank of America and UBS. The narrative is similar to housing: Existing vehicles are old and prices are rising. Covid or not, there’s a widening sense the industry is recovering – especially with help from China.
Those factors could also provide a tailwind for RACE into its next quarterly report on November 3.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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