Hogs and Bats and Crabs
- Posted by Greg Harmon
- on March 4th, 2014
Is there seasonality in stock price patterns in motorcycle stocks? Seems so. This week last year I wrote about Harley-Davidson, $HOG, in a piece titled Hogs and Sharks, as the stock was building a Shark harmonic. Today finds it building a Bat harmonic (blue). The most important thing to know about the Bat harmonic is that it targets for the price to continue higher to 68.88 before a Potential Reversal Zone (PRZ). The funny thing about a Bat though is that it can morph into a Crab (red). Sound like Harry Potter? Well maybe. But if that happens then the target for the PRZ adjusts higher to 75.87.
What does it take for a Bat to morph into a Crab? A move in price over 70, the previous high would be a good start. With the move to 68.88 still about 3.5% away it may make sense to get in now for the short ride and see if the magic works. The Rising RSI and MACD both support it happening now. Against Tuesday’s low all you have to risk is less than $1.
Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades from Amazon.
Dragonfly Capital Views Book Launch Celebration
For a Limited the Opportunity to join the Dragonfly Capital Views Premium Membership on an Annual basis is available for only $618.
This special Fibonacci rate (1000 divided by Φ) will be gone soon. Don’t miss this opportunity to join or upgrade! Sign up here. As part of this celebration, the first 25 annual subscriptions will also get the book*.
*book will be sent after payment is processed. It will also require you to send me your address for delivery.
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through February 2014 Expiry and sign up here for the free 7 day trial before you pay.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
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)
- SPY Trends and Influencers August 1, 2015
- Macro Week in Review/Preview July 31, 2015
- How This Week’s Premium Top 10 Performed
- Premium Earnings 7-31-15
- US Markets Smiling at Emerging Markets
- Analysis and Trade Ideas for Tempur Sealy Earnings
- Premium Earnings 7-30-15
- 5 Reasons to buy the Transports…right now
- Analysis and Trade Ideas for Whole Foods Earnings
- Premium Earnings 7-29-15