Price action reveals Ferrari N.V., Wyndham Hotels & Resorts, Inc., O'Reilly Automotive Inc as the stocks to watch as they near pivotal price targets in the near term.
A recap of yesterday's session: Leading equity indices in the US rose as S&P 500 ended the session at 3,956.37 after a 5.54% gain. Dow Jones closed the day at 33,700, having gained 3.7%.
What is a Price Target?
A price target is the projection of an asset's future price. Support and resistance lines are important components of technical analysis used in predicting a price target because they prevent an asset from being pushed beyond a certain limit. When an asset drops in value it nears its support line, and when it increases in value it comes closer to its resistance line. Assets that are on a trend and are approaching one of their lines are selected for this article. Let's review some consumer discretionary stocks and their price targets.
Ferrari's Price target: $214.41 | Last close: $212.8 | Daily range: $210.82 – $214.23 | Off hours: $212.8
Ferrari N.V.'s recent run now faces a major challenge as concentrated supply is likely found at $214.41 with price action currently $1.61 away.
Having gone up $9.9 over the past 7 days, on-trend Ferrari closed the session yesterday with more of the same: having closed Wednesday at $201.49, bullish sentiment helped Ferrari to reach highs around $214.23 before paring gains and ending yesterday at $212.8. Daily trading volume (443,794 shares) was slightly above the current multiday average of 352,384.
Buyers pushing Wyndham Hotels & Resorts towards its price target of $73.93; currently at $73
Wyndham Hotels & Resorts's run now faces a challenge at $73.93, which is only 91 cents away from the line. Overcoming it might send the company towards their next major resistance line— this will surely be interesting to follow.
4 days and 9 cents of gains are not enough for Wyndham Hotels & Resorts. yesterday's session pointed in the same direction — after ending Wednesday's session at $71.23, Wyndham Hotels & Resorts went up to $74.25 yesterday only to fall back and close at $73. Daily trading volume (1.65 million shares) increased, making up 170% of the 21-day average (973,111).
Buyers pushing O'Reilly Auto Parts towards its price target of $849.73; currently at $843.85
O'Reilly Auto Parts's recent run now faces a major challenge as concentrated supply is likely found at $849.73 with price action currently $5.88 away.
Having added to its $13.59 increase during 7 days of gains, O'Reilly Auto Parts pointed in the same direction yesterday: an influx of buyers helped the automotive aftermarket and services retailer to end the session higher around $843.85, while establishing a $834.36 to $847.93 session range yesterday. The day's trading volume totalled 467,723 shares — slightly below the 21-day average of 510,615.