In the previous part, we discussed how Harley-Davidson’s (HOG) valuation multiples are trading higher compared to other mainstream automakers. While valuation multiples can help investors in making investment decisions, it’s also important for them to be aware of key resistance and support levels.
Investors can use these key technical levels to refine their entry and exit from HOG stock.
Key support and resistance levels for HOG
As of July 11, 2017, HOG stock was trading at $51.99. Currently, the price is hovering right above a key support near $51.60 as shown in the chart above. Any early breach of this key support could indicate underlying weakness in momentum and trigger a sell-off.
In general, key support levels also act as an area of reversal in the stock prices. This is the reason why investors should pay close attention to near-term price action in HOG stock for any signs of reversal.
A stock price reversal from this support could initiate an upside movement towards an immediate resistance level near $56.10. Note that upward stock price movements could see resistance around resistance levels and downward price movements could hit roadblocks around support levels.
Auto industry’s 2Q17 earnings
The auto industry’s (XLY) 2Q17 earnings will begin with Harley’s earnings event on July 18. General Motors (GM), Ford Motor (F), and Fiat Chrysler (FCAU) are set to release their 2Q results on July 25, July 26, and July 27, respectively.
Visit Market Realist’s Autos page to stay updated on analysts’ estimates for auto companies’ 2Q17 earnings.