Get Your Motor Running….

• Posted by Greg Harmon
• on July 16th, 2013

Recent favorites, Ford, $F, for the slower crowd, and Tesla, $TSLA for the momentum crowd got hit Tuesday as they both received downgrades. Both may be a buy sometime shortly, but there is motor vehicle company that is ripe for a trade now. How appropriate that in the middle of Summer it makes sense to look at Harley Davidson, $HOG. From the chart below you can see the stock has moved higher off of the 200 day Simple Moving Average (SMA) and is now consolidating

at the 50 day SMA in a bull flag. A break higher has a Measured Move to the 60-61 area, near the previous top. Look for a break over the 56 as the trigger. But the Relative Strength Index (RSI) is turning lower. should it continue out of bullish territory and is followed by the Moving Average Convergence Divergence indicator (MACD) which is already starting to roll over, then a trip back to the bottom near 50 is in the cards. At that point it gets interesting. Upon breaking 50 it will trigger a Head and Shoulders Top with a price objective of at least 40.39. Look for it lower on a break under the 100 day SMA at about 53.80.

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