uploads/2018/07/7-8.png

Assessing Harley-Davidson’s Key Technicals

By

Updated

Harley-Davidson

Previously, we looked at Harley-Davidson’s (HOG) valuation multiples, which are higher than those of Japanese motorcycle and car manufacturer Honda (HMC). Like valuation multiples, technicals can guide investors’ investment decisions.

Article continues below advertisement

Key technicals

As of July 17, Harley-Davidson stock was trading at $42.65. The stock had fallen 17.4% in the last six months but had risen 2.5% in the last three months.

HOG stock has trendline support near $41.90, and a violation of this price could attract renewed selling pressure. Stiff support lies near $40.05.

On the upside, immediate horizontal resistance lies near $43.70. A violation of this key resistance could suggest a positive shift in the stock’s medium-term price trend and attract fresh buying. In general, key resistance and support levels can obstruct stock price movement and act as short-term reversal points. A sustainable violation of these levels could suggest a trend is strong.

Auto industry’s Q2 earnings

The auto sector’s (XLY) Q2 2018 earnings season is set to begin with Harley-Davidson’s earnings event on July 24. Its release is scheduled to be followed by Ford (F), General Motors (GM), and Fiat Chrysler (FCAU) releasing their second-quarter results on July 25. Visit Market Realist’s Autos page to learn more about analysts’ estimates for these automakers’ Q2 earnings.

Advertisement

More From Market Realist