In the first week of March, Ferrari stock (RACE) continued to trade on a positive note, though settled at $124.71 with a loss of 3% during the week. In 1Q18, Ferrari has continued its journey upward and had risen 17.1% as of March 6. The stock rose 14% and 3.9% in January and February, respectively. Let’s take a look at key technical support and resistance levels for the stock in the coming weeks.
Last week, Ferrari stock continued to trade above its 50-day simple moving average of $120.60, confirming bullish sentiments. The stock reached an all-time high of $131.20 on February 16, which should act as an immediate horizontal resistance level.
Its 14-day RSI (relative strength index) score rose from 52.8, showcasing minor strength in its momentum. No major support level lies above $118.50.
In 2017, Ferrari stock marked its second consecutive year in positive territory. The stock yielded an outstanding return of 80.3% after rising 21.1% in 2016. Last year, automakers (XLY) General Motors (GM), Ford (F), and Fiat Chrysler (FCAU) rose 17.7%, 3.0%, and 96.4%, respectively.
Key positive factors
In 4Q17, Ferrari reported earnings of 0.71 euros, or $0.88, per share, reflecting a ~20.3% rise from 4Q16. An increase in the company’s global sales and its favorable product mix boosted its profit margins in 2017. Last year, RACE’s adjusted EBIT (earnings before interest and tax) margin expanded to 30.3% from 28.3% in 2016.
During its 4Q17 conference call, Ferrari management also gave solid guidance for 2018. The company expects 2018 shipments of more than 9,000 units, a 7.2% rise from the 8,398 units shipped in 2017. The company also expects its positive revenue and profit margin trends to continue in 2018. This positive guidance could be one reason why Ferrari has been able to maintain a bullish momentum in 1Q18. Continue to the next part to see how Harley-Davidson stock traded last week.