This is a look back.
In August there was this post:
In which it was said:
If this race was hill climb, RACE obviously finished in the money.
Nothing like stair-steps in an uptrend.
But, a couple of observations: 1) the stock has not had a breakdown from a boxed consolidation until recently; 2) there’s also a small head-and-shoulder top formation inside the box; 3) when leader flag it’s a warning for the general market too.
So what now? It’s short the bounces until it makes a new high, and as long as it continues breaking to the downside.
And keep in mind this could be a warning in a possible transition from bull market to bear market.
Simply put, no stock goes up forever. At least not in a trader’s world. I’m sure Warren Buffet might disagree but then he’s been investing in a century time frame.
Since August, RACE has a rally back up to 140 and has rolled over as expected. That failing rally was the opportunity for long-term investors to take profits and get out.
See the chart below which has been updated from the chart in the link.
Obviously the trend has changed to a downtrend. RACE, step by step, is now building a down staircase.
Its race run Ferrari is pulling into the pits.