FERRARI - Ferrari S.p.A. Stock on Possible Correction - 10/19/2016 (GMT)

Ferrari S.p.A. (NASDAQ: RACE) is the world's most powerful brand according to Brand Finance. The stock is establishing in an uptrend since January and during last week the Race stock reached a fresh 11-month high at $54.20.

From a technical point of view, currently, the price continues developing above the three SMAs (50-SMA, 100-SMA and 200-SMA), however, it seems to move towards the 50-SMA which coincides with the $50.00 psychological level. Slightly below the aforementioned obstacle, there is a support level, the 23.6% Fibonacci level, which could act as a dynamic barrier in the near term. In the case of a break below the latter level then we should expect a downward move until the $46.20 obstacle, which overlaps with the 100-daily SMA.

On the daily chart, the technical indicators are endorsing the bearish attitude since both the MACD and RSI are falling. The RSI indicator is still moving in a positive territory while it is sloping downwards approaching the 50 level. In addition, the MACD oscillator lies below its trigger line.