Ferrari Rises 3.34% To $517.56 As Technicals Signal Bullish Continuation

Ferrari (RACE) advanced 3.34% in the latest session, closing at $517.56 with notable volume expansion. This analysis synthesizes technical perspectives using one year of historical data.
Candlestick Theory
Recent price action shows a bullish reversal pattern. The July 16 session formed a Hammer candle (low: $492.64, close: $505.30) near the psychological $500 support, validated by subsequent gains. Resistance is emerging near the year-to-date peak of $517.57 (July 23 high). A confirmed breakout above $518 could signal continuation, while failure may retest $505 support – aligning with the March 27 swing low of $402.90, now a major historical floor.
Moving Average Theory
The 50-day MA ($492), 100-day MA ($471), and 200-day MA ($452) demonstrate robust uptrend configuration, with shorter averages above longer ones. Price trading above all three MAs confirms bullish bias. The 50-day MA recently acted as dynamic support during the July 15 dip ($485), while the 200-day MA underpinned the April correction. Golden Cross formations in Q1 2025 continue to support the primary trend.
MACD & KDJ Indicators
MACD shows bullish momentum, with the histogram printing positive for seven consecutive sessions. The signal line crossover occurred near $502, coinciding with the July 16 rebound. KDJ readings (K: 82, D: 75, J: 95) indicate overbought territory. While high KDJ typically precedes consolidation, the absence of bearish divergence suggests strength may persist near-term. Confluence exists with MACD’s upward trajectory.
Bollinger Bands
Bands contracted sharply preceding the July 16 breakout (bandwidth: 2.5% vs. 4.3% monthly avg), indicating volatility compression. Subsequent expansion validated the upside move. Price currently rides the upper band ($516), which may temporarily curb advances but reflects strong momentum. The middle band (20-DMA at $492) offers pullback support.
Volume-Price Relationship
The July 16 surge (+3.73%) occurred on 552k shares – the highest volume in six weeks – confirming bullish conviction. Recent gains show ascending volume (July 23: 390k vs. 10-day avg 305k), supporting sustainability. Distribution was absent during June-July corrections, as volume faded during pullbacks. Notable accumulation occurred near $460-480 (May-June) – now a major support zone.
Relative Strength Index (RSI)
14-day RSI reads 68, approaching overbought territory but without divergence. The RSI trendline has held above 40 since early July, signaling strengthening momentum. Caution is warranted above 70, though Ferrari has sustained elevated RSI for extended periods during Q2 2025 without immediate reversals, requiring confirmation from other indicators.
Fibonacci Retracement
Using the March 27 low ($402.90) and July 23 high ($517.57):
- 23.6% retracement: $495.30 (recently defended on July 22)
- 38.2% level: $479.80 aligns with the 50-day MA and June consolidation
- 61.8% at $447.50 converges with the 200-day MA
The shallow 23.6% pullback preceding the latest rally demonstrates robust demand, with $495 now pivotal support. A deeper correction would find confluence near $480 where Fibonacci, volume profile, and moving averages cluster.
Confluence & Divergence
Strong confluence exists at $495-500, combining Fibonacci, horizontal support, and the 50-day MA – validated by July’s reversal. Bullish alignment appears between MACD, volume, and moving averages. Minor divergence exists as RSI approaches overbought while KDJ enters extreme territory, suggesting near-term consolidation risk. However, absent bearish candlestick patterns or volume distribution, the burden of proof remains with bears. Ferrari’s technical posture suggests the path of least resistance is upward, with $518 as the immediate hurdle and $480-495 constituting a high-probability demand zone should retracements materialize.