Above Resistance: Harley-Davidson

Published on Wednesday, 20 June 2012 07:08 Written by TradersHuddle Wire

New York, June 20th (TradersHuddle.com) - Shares of Harley-Davidson, Inc. (NYSE:HOG) closed the session at $50.39 just above calculated resistance at $49.74. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

Harley-Davidson, Inc. (NYSE:HOG) manufactures and sells motorcycles. Its products include heavyweight touring, custom, and performance motorcycles, as well as a line of motorcycle parts, accessories, and general merchandise.

The stock was trading in a well defined range with support at $45.16 and resistance at $49.74. Given that this range was broken, traders will be closely monitoring Harley-Davidson's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Harley-Davidson is still near the broken resistance level, traders will be focusing on the $49.74 level to see if the stock holds the breakout without rolling over.