Ferrari Shares Extend Slide With 2.17% Drop As Bearish Signals Dominate Technical Outlook

Technical Analysis of Ferrari (RACE)
Ferrari (RACE) closed at $487.11 in the latest session, declining 0.24% and extending losses to three consecutive days, totaling a 2.17% drop. Below is a multi-indicator technical assessment based on historical price data.
Candlestick Theory
Recent sessions show three bearish candles with progressively lower closes, indicating sustained selling pressure. A critical support zone emerges near $472.42 (June 24 low), where a long green candle previously reversed the downtrend. Resistance is evident near $494–$497, aligning with the July 10–11 peaks. The current consolidation below $490 suggests weakened bullish momentum, with a break below $485 potentially accelerating declines.
Moving Average Theory
The 50-day MA (approx. $480) recently crossed below the 100-day MA (approx. $482), signaling a bearish near-term shift. Price trades below all key MAs (50/100/200-day), confirming a downtrend. The 200-day MA near $475 offers potential support, but death cross formation (50 below 100 MA) strengthens resistance near $485–$490. Sustained trading below these MAs reinforces bearish control.
MACD & KDJ Indicators
MACD remains in negative territory with the histogram flatlining, suggesting persistent downside momentum without immediate reversal signals. KDJ’s K-line (29) and D-line (34) hover near oversold thresholds, but the absence of a bullish crossover indicates unresolved selling pressure. Both oscillators align in warning against premature bottom-picking despite nearing oversold extremes.
Bollinger Bands
Price oscillates near the lower band ($485), reflecting elevated selling pressure. Bandwidth contraction in early July preceded the current breakdown, supporting bearish volatility expansion. A close below $485 may trigger further downside targeting $472 (June low), while recovery above the middle band ($495) is needed to neutralize bearish bias.
Volume-Price Relationship
Recent declines (July 11–15) occurred on above-average volume, confirming distribution. The July 10 rally to $497.94 saw significant volume, establishing it as strong resistance. Current downside lacks climactic volume, suggesting no capitulation yet. Weak rallies on muted volume (e.g., July 8–9) underscore unsustainable buying interest.
Relative Strength Index (RSI)
Daily RSI at 39 avoids oversold territory but trends downward from mid-June’s peak near 60. Bearish divergence appeared in late June as RSI peaked lower while price tested higher highs, foreshadowing the current correction. A break below RSI 30 would signal oversold conditions but requires confirmation from other indicators for reversal potential.
Fibonacci Retracement
Using the swing low of $414.85 (April 4) and high of $504.50 (Feb. 25):
- 38.2% level at $485: Aligns with July resistance and the 100-day MA.
- 61.8% level at $460: Converges with the 200-day MA and June’s consolidation zone.
Current price tests the 78.6% retracement ($472), making this a critical support. Failure here opens a path to $460. A hold above $472 may prompt a rebound toward $485.
Confluence & Divergence
Confluent Bearish Signals:
- Resistance cluster at $485–$490 (38.2% Fib + 100-day MA + Bollinger mid-band).
- Death cross (50 below 100 MA) coinciding with descending volume profiles.
Divergence Note: KDJ nears oversold levels while MACD shows no bullish reversal, creating mixed momentum signals. This divergence warrants caution against aggressive shorts.
Conclusion
Ferrari’s technical structure leans bearish, with multi-timeframe resistance near $485–$490 and critical support at $472. Confluence from moving averages, Fibonacci levels, and volume analysis favors downside continuation unless price reclaims $490 decisively. Oversold signals from KDJ and potential RSI dips warrant monitoring for reversal catalysts, but current momentum suggests $460 may be tested before stabilization. Probabilistic entry opportunities would require a confirmed bounce from $472 with supporting volume.