Are Ferrari shares accelerating to an all-time high?

by Alistair Strang from Trends and Targets |

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Despite the economic climate and poor track performance, Ferrari’s road cars are selling well.

Ferrari (NYSE:RACE) 

A surprising number of folk remain interested in the prancing horse, despite their 2020 Formula 1 performance being measured in pantomime ponies. 

We last reviewed Ferrari (NYSE:RACE) over a year ago, and we'd given $193 as a pretty important point of interest. 

Despite  this price level assuming a degree of importance during August and September and even closing slightly above our big picture target, we're starting to get a little nervous.

Ferrari, quoted in New York, are presently trading at around $184, and we can identify below $171 as being a point where some sort of short position should be justified, one with a stop loss placed at $186. 

Below $171  risks triggering reversals to an initial $157 with secondary, if broken, a rather less pleasing $130, though perhaps meritorious of the companies pace in F1. 

To put it into perspective, if the new Top Gear’s (surprisingly watchable) Paddy McGuiness was on the F1 grid, there'd be a reasonable chance he'd finish before Ferrari due to their reliability.

Of course, this state of affairs perhaps means the company are focussed on their road cars this year!

Despite luxury cruise ships queuing to be broken up for scrap metal value in Turkey, we rather doubt the luxury car market faces similar fate. 

Apparently the pandemic has been financially kind to the super-rich, making it pretty certain Ferrari are still tackling a never ending waiting list. 

This being the case, above $189 promises a change in fate for the share price as we're looking for recovery again to an initial $192 with secondary, if exceeded, calculating at $208 and yet another all-time high. This is liable to prove significant, threatening a longer-term attraction from $225.

Source: Trends and Targets      Past performance is not a guide to future performance

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation, and is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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