Interactive Investor

Can Ferrari shares race to a new all-time high?

After accelerating higher ahead of the new F1 season, our chartist has the outlook for Ferrari shares.

11th March 2019 09:21

Alistair Strang from Trends and Targets

After accelerating higher ahead of the new F1 season, our chartist has the outlook for Ferrari shares.

Ferrari (NYSE:RACE) 

With arguably the most important date of 2019 fast approaching, it makes sense to review the Ferrari (NYSE:RACE) share price. After all, despite the marque tending to fade in last year's F1 championship, there appears a chance for optimism in the upcoming date with destiny in Australia, just six days away.
 
To be honest, it appears the markets have lost interest in Brexit, perhaps expecting that particular date to be altered.
 
Ferrari appears to be doing something fairly interesting. In the event the share price manages above $135, we'd regard it as entering a cycle to an initial $146.

Visually, there's every expectation of a stumble at such a level, if only due to prior highs.

Importantly, though, should the price manage close to a session above $146, it appears longer-term growth to $160 is very possible. This will represent a new, all-time high, and a fairly reasonable argument in favour of the team winning a world championship!
 
Of course, there's always a chance of things going terribly wrong. In the event the share moves below $123, reversal down to an initial $118 seems likely with secondary, if (when) broken at $111 and hopefully a bounce.
 
In the next few weeks, we shall obviously pay attention to the Brexit things, giving worst and best case scenario against vulnerable shares.

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 or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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