Hogs and Sharks
- Posted by Greg Harmon
- on March 6th, 2013
Harley Davidson, $HOG, has been on a tear higher since leaving a base near 40 in October. As it has moved higher the 50 day Simple Moving Average (SMA) has been a guide for the trend, giving support on every pull back. The trend from this perspective looks set to continue with a rising Relative Strength Index (RSI) and a Moving Average Convergence Divergence indicator (MACD)
that has bottomed and turned up on the signal line which has crossed the histogram higher. There are some cracks in the trend though when looking in the blue circle area. The Bollinger bands have moved to a sideways motion and the last few candles have some upper shadows seen on topping activity. Blowing up that circle below shows that there is a Shark in with the Hogs. The Bearish Shark is near fulfillment with a Potential Reversal Zone between 54.81 and 55.52. Should it trigger
the expected reversal would first target about 52.13 based on the upper target. With the uptrend still in tact at that point this is how you would enter the stock on a pullback. This should coincidentally occur near the 50 day SMA as well.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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