Trading Idea: Is Harley-Davidson Breaking Out?
Published on Thursday, 18 October 2012 06:56 Written by TradersHuddle Wire
New York, October 18th (TradersHuddle.com) - Shares of Harley-Davidson, Inc. (NYSE:HOG) closed the session at $44.00 just above calculated resistance at $43.79. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.
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 $41.21 and resistance at $43.79. 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 $43.79 level to see if the stock holds the breakout without rolling over.