Shares of Ferrari (RACE) - Get Report  were flying higher Monday, up 6% after the automaker released its third-quarter earnings.

The rally has Ferrari stock hitting new all-time highs on the day, causing investors to wonder just how high this stock can go. Working in their favor is the company's latest quarterly figures.

Not only did Ferrari beat on top- and bottom-line expectations, but management raised its full-year outlook. They now expect sales of €3.7 billion vs. a prior outlook of €3.5 billion. Previously, management expected EBITDA in a range of €1.21 billion and €1.25 billion, but now expect €1.27 billion.

Ferrari stock was already enjoying a technical breakout over resistance. However, the move had come in the wake of a difficult trading period. The Federal Reserve had just cut interest rates on Wednesday and the jobs report for October was released on Friday. More so, earnings were scheduled for release on Monday.

It's hard to blame traders for not taking a long position in this one ahead of time. However, with a beat-and-raise quarter acting as a tailwind, it's possible for RACE stock to continue higher.

Let's look at the charts.

Trading Ferrari Stock

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As you can see on the daily chart above, the breakout actually occurred on Thursday, when RACE stock rallied above downtrend resistance (blue line) and cleared the 100-day moving average.

With Monday's gap-up rally, it would be ideal for the stock to hold up over $170. This area was resistance back in July and if it can turn to support, it bodes well for the bulls.

Keep it simple on the long side. Over Monday's low of $169.45 and Ferrari stock still looks good on the long side. If prior resistance turns to key support, RACE stock may become a buy-on-dips candidate, while a move higher could continue up toward $180 based on weekly trend lines.

Monday's low plays a role on the long side as laid out above, but it also plays a role on the downside.

Should Ferrari stock lose Monday's low, short-term bulls may look to lock in their post-earnings profits and/or limit their losses for those that entered on the post-earnings rally. Should RACE stock embark on a pullback, see that the $164.50 area buoys it. Below could fill the post-earnings gap near $161.40.

Should the overall market continue to hold up, Ferrari stock may continue to trade higher, particularly as its earnings report acts as a tailwind rather than a headwind.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.