Stock of the day: Ferrari

The European and American indices have resumed trading after the weekend on new long-term lows. The mood is of course pretty negative, despite the initial bullish bounce attempt. It’s definitely more probable to find a bearish trading occasion on stocks right now, and in this piece we’re looking at Ferrari –  a company that currently has a mid-term sell signal.

Today, Ferrari managed to drop below the 50% line of a recent upswing. That’s in line with a recent downtrend marked by the green line. The drop is so far significant and the price is aiming at the last Fibo – 61.8% (blue). That area is not only Fibo a local top throughout June.

The scenario on Ferrari is negative and the price touching the 61.8% is almost inevitable. The current sell signal cancels should the price break the green down trendline, but chances for that happening are now rather limited.