With a strong upward move since early October, Ferrari (RACE), the luxury car company, is looking pretty strong.

This name on the Action Alerts PLUS Bullpen list has really made a good move on very strong volume. In the chart below, notice those heavy green bars in early February?

The indicators are mixed, the moving average convergence divergence (MACD) on the daily chart has reversed, but the final oscillator has caught on to support around the 50 level.

The Trader’s Dynamic in the lower panel also rolled over, but the price action is not terrifying. In fact, the current price is only 2% off the recent highs, so perhaps the indicators are exaggerating a bit.

Tight consolidation has been happening at a very low turnover lately. This is what you want to see during a corrective phase; the big money is not letting go of the stock.

Although AAP has Ford ( F) in its portfolio, Ferrari is clearly of interest and on the radar. Luxury goods seem to sell well in a bad economy (at times). Ferrari is one of those brands that has loyal owners. Loyalty isn’t going anywhere.