In the previous part of this series, we looked at Harley-Davidson’s (HOG) valuation multiples, which were trading higher than Japanese motorcycle and car manufacturer Honda (HMC). While valuation multiples can help investors make better investment decisions, it’s also important to be aware of key technical levels to refine the entry and exit from a stock.
Key technical levels
As of April 16, 2018, Harley-Davidson stock was trading at $42.04. It has witnessed an 18.5% value erosion in the last three months. Since March 23, 2018, HOG stock has been trading in a narrow price range of $41.70–$42.20. The lower range of $41.70 is likely to act as an immediate support for the stock followed by a key support near $37.
On the upside, an immediate resistance level is near $42.20, followed by an important resistance level near $45.60.
Only a violation of this key resistance could suggest a positive shift in the medium-term price trend and attract fresh buying. In general, key resistance and support levels could obstruct the stock price movement and act as a potential point for a short-term reversal in the trend. Also, a sustainable violation of these levels could reflect strength in the existing trend.
Auto industry’s 1Q18 earnings season
The auto sector’s (XLY) 1Q18 earnings season will begin with Harley-Davidson’s earnings event on April 24, 2018. Ford (F) will release its first-quarter results on April 25, 2018. Legacy automakers Fiat Chrysler (FCAU) and General Motors (GM) are both set to release their 1Q18 results on April 26, 2018. Be sure to visit Market Realist’s Automobiles page to stay updated on analysts’ estimates for auto companies’ 1Q18 results.
Also be sure to check out all the data we’ve added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, historical data, and dividend information. Take a look!