After hitting support near 34.70 on November 29th, Harley-Davidson (NYSE: HOG) rebounded and on December 6th, it broke above the downside resistance line drawn from the high of October 29th. Now the stock is trading slightly above the 37.30 level, while overall, it continues to trade above the upside support line drawn from the low of August 28th. Thus, we will consider the near-term picture to be positive for now.
If investors remain willing to buy this stock, we may soon see a test near the 38.10 zone, which is defined as a resistance by the high of November 15th. If that level is also broken, then we could experience extensions towards the peak of November 8th, at around 39.40.
Taking a look at our daily oscillators, we see that the RSI lies above 50 and points up, while the MACD, already above its trigger line, has just poked its nose above zero. Both indicators detect positive momentum and support the notion for HOG to continue drifting north.
We will start examining the bearish case only if the share price falls below 34.70. This would also bring the price below the aforementioned upside line and may initially pave the way towards the 33.80 barrier. Another break, below 33.80, may allow the decline to continue towards the 32.77 area, marked by the low of October 9th.
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