Harley-Davidson Is Near a Key Resistance Area

Published on Tuesday, 31 July 2012 07:56 Written by TradersHuddle Wire

New York, July 31st (TradersHuddle.com) - Shares of Harley-Davidson, Inc. (NYSE:HOG) are trading very close to calculated resistance at $45.18. The stock ended the trading session at just $44.49, which is near levels that make it difficult to buy or start a position.

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.

Harley-Davidson's stock range is defined by its calculated support defined at $41.83 and by the resistance level at $45.18; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Harley-Davidson. However, as the stock pulls back towards $41.83 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $45.18 then traders will get an opportunity to enter the stock as it moves to a higher range.