#Ferrari #Aristocrat #Luxury #automotive
Ferrari (NYSE:RACE) share price Tuesday is at 170.98 just 5.9% off it’s all time highs on low volume. The pattern suggests that the sellers are exhausted and the selling is over.
This scenario looks to be a buying opportunity for the next leg up.
The Support is Strong at 170.68 and the resistance is moderate and Nil above 180.36.
Compared to the aggregate P/E ratio of 8.88X in the automotive sector Ferrari has a P/E ratio of 41.2X. Ferrari is considered a defensive issue in the sector, as it consistently performs better than its industry group throughout the year.
Our overall technical outlook is Bullish in here, as all Key indicators are Bullish to Very Bullish as it approaches its all time highs at 179.21 marked on 18 February 2020.
Ferrari (NYSE:RACE) finished Monday at 170.98, +1.36 in NY just shy of its all time highs.
The Maranello Outfit’s shares were raised to Buy from Hold at HSBC.
Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I have called it at it at 200+/share long term, adjusting it to 200/share short term (after the virus) and siding with BAML to 230 long term for now. The stock is now considered defensive in the sector.
Have a healthy day, Keep the Faith!
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge. Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he it the author of “The Red Roadmaster’s Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.