RACE

What is RACE?

Ferrari N.V. isn't just a car maker; it’s a luxury powerhouse. Founded by Enzo Ferrari in 1947 in Maranello, Italy, the company grew out of the Scuderia Ferrari racing team. For decades, they have maintained a business model centered on exclusivity, deliberately producing fewer cars than the market demands to preserve brand value and high resale prices. This strategy has turned the "Prancing Horse" into a global symbol of status and peak engineering.

The core business focuses on high-performance sports cars, ranging from the V8 and V12 internal combustion models to their newer hybrid lineups like the SF90 Stradale. They recently broke tradition with the Purosangue, their first four-door four-seater, which has seen massive demand. Beyond the vehicles, Ferrari generates significant revenue from brand licensing, luxury lifestyle products, and their perennial presence in Formula 1, which serves as their primary R&D lab and marketing engine.

Historically, Ferrari’s 2015 IPO marked a massive shift, decoupling from Fiat Chrysler and establishing itself as a standalone luxury titan. Financially, they are a juggernaut in the automotive world, boasting industry-leading EBITDA margins often exceeding 35%. Their order books are typically full for years in advance, providing incredible visibility into future cash flows and protecting them from broader economic downturns that hit mass-market manufacturers.

Looking toward 2026, the strategy is all about the "e-building" and electrification. Ferrari is set to launch its first fully electric supercar in late 2025, with 2026 being the first full year of its market presence. The goal is to have 60% of their sales come from hybrid or fully electric models by 2026. They are also doubling down on high-margin personalization programs, where customers spend hundreds of thousands extra to customize their rides. This shift ensures they stay relevant in a green-energy world without sacrificing the soul-stirring performance and prestige that defines the brand.

What is the XTRM Indicator?

The XTRM (Extreme) Indicator is a proprietary momentum indicator that measures cumulative time spent in extreme territory. Unlike traditional oscillators like RSI that measure a snapshot in time, XTRM accumulates how long an asset remains in oversold or overbought conditions, providing a deeper understanding of momentum exhaustion.

For RACE, monitoring the XTRM indicator provides valuable insights into prolonged extreme conditions. When the XTRM drops significantly below zero (especially below -125), Ferrari N.V. has been in oversold territory for an extended period, suggesting potential for a reversal. Conversely, high positive XTRM values indicate extended overbought conditions.

Understanding RACE XTRM Signals

• Deep Oversold (XTRM below -125): When RACE XTRM falls below -125, it indicates prolonged time in extreme oversold conditions. This cumulative measure often provides stronger reversal signals than single-day oversold readings.
• Neutral Zone (XTRM near 0): When XTRM hovers around zero, RACE is in a balanced state without extended extreme conditions. This can indicate consolidation or indecision in the market.
• Overbought (XTRM above +10): An XTRM above +10 indicates RACE has been in overbought territory for an extended period, potentially signaling an overextended rally and increased risk of pullback.

Daily vs Weekly XTRM for RACE

This page displays both daily and weekly XTRM for RACE. The daily XTRM tracks short-term cumulative extremes, useful for identifying swing trading opportunities. The weekly XTRM provides a longer-term perspective on momentum exhaustion, helping investors spot major turning points.

By analyzing both timeframes together, you can identify when Ferrari N.V. is experiencing extreme conditions at multiple time scales, which often leads to the strongest reversal setups.

Historical XTRM Extreme Analysis

Above, we track historical instances when RACE XTRM dropped below -125 (extreme oversold territory). These periods represent times when Ferrari N.V. spent extended periods in oversold conditions, which historically have presented some of the best buying opportunities. Analyzing how RACE behaved after reaching these extreme XTRM levels can help inform future trading decisions.