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.
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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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