Trading Idea - Is Harley-Davidson close to Resistance?

Published on Wednesday, 01 September 2010 06:32 Written by Danny Miller

New York, September 1st (TradersHuddle.com) - Shares of Harley-Davidson, Inc. (NYSE:HOG) are trading very close to calculated resistance at $25.11 with the current price action closing at just $24.33 placing the stock near levels that make it difficult to buy.

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 current stock range is defined by current calculated support defined at $23.66 and by the resistance level at $25.11, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Harley-Davidson, as the stock is well above support, however, as the stock pulls back towards $23.66 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $25.11 then traders will get an opportunity to enter Harley-Davidson stock by establishing a position as the stock moves to a higher range.