Swing Trade Idea (RACE) – May 30, 2023
Our bearish trade for Tuesday, May 30th is Ferrari N.V. (RACE). RACE is part of the Consumer Discretionary Sector, which has performed at 3.04% over the last month while it traded into an area of resistance.
RACE broke below a trendline, indicating that it has reached a point of exhaustion. The 1M trend recently turned from Bullish to Neultral and we believe that some pullback can be expected. The next support is at around $280 and then $260.
As a close, if RACE were to trade above $300 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves above $12.84.