Key Technical Levels in Harley’s Stock ahead of 3Q17 Earnings
In the previous part of this series, we looked at Harley-Davidson’s (HOG) valuation multiples. The company’s valuation multiples are trading higher compared to other mainstream auto companies. While valuation multiples can help investors in making better investment decisions, it’s also important to be aware of key technical levels to refine entry and exit from a stock.
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Key technical levels to watch
As of October 10, 2017, Harley’s stock was trading at $46.32. The price is hovering right above a key support near $45.80 as shown in the chart. Any early violation of this key support could confirm underlying weakness in the trend and trigger a sell-off towards the next support level near $41.30.
A rebound in Harley’s stock price from these support levels could initiate an upside movement towards an immediate resistance level near $52.60.
In general, important support and resistance levels could obstruct stock price movement and act as potential point for a short-term trend reversal. Also, any violation of these levels could reflect strength in the existing trend.
Auto industry’s 3Q17 earnings
The auto sector’s (XLY) 3Q17 earnings season will begin with Harley-Davidson’s earnings event on October 17. General Motors (GM) and Ford Motor (F) are set to release their 3Q results on October 24 and October 26, respectively. Italian American automaker Fiat Chrysler (FCAU) is expected to announce its third-quarter results on November 2.
Please visit Market Realist’s Autos page to stay updated on analysts’ estimates for auto companies’ 3Q17 earnings.