Yesterday, Harley-Davidson Motor Company (NYSE: HOG) reported its Q1 earnings, delivering a better-than-expected EPS of $0.45 versus the forecasted $0.40. However, sales have been dropping due to the global lockdown, but given that HOG managed to increase its cash level and push the long-term debt lower, the company still looks attractive overall. The share price had a good boost yesterday, getting back to the levels seen in the end of March. From the technical side, HOG is currently very close to its key resistance zone between the 22.58 and 23.23 levels. That said, although there are some signs of positivity, from around mid-March, the stock is moving inside a wide range, roughly between the 14.24 and 23.29 levels. As long as the price remains inside that range, we will stay neutral.
In order to examine higher areas, we would like to see HOG pushing through the above-mentioned resistance area between the 22.58 and 23.29 levels, marked by the highs of March 25th and 26th respectively. If so, that would confirm a forthcoming higher high and more buyers may join in. The stock could then travel to the 25.27 obstacle, but if the buying doesn’t end there, a break of that area might clear the way further north. The next resistance level to consider may be near the 27.06 hurdle, marked by the high of March 6th.
The RSI and the MACD are somewhat in support of the above-discussed idea. Although the RSI looks a bit flat on the 4-hour chart, it still remains well above 50. The MACD continues to point higher, while balancing above zero and its trigger line.
Alternatively, if the share price falls below the 20.29 territory, which is yesterday’s low, this may lead to a further decline within the given wide range. The stock could slide all the way to the 17.33 obstacle, a break of which may clear the path to the lower side of the previously-mentioned range, between the 14.62 and 14.24 levels, marked by the lowest point of April and the lowest point of March respectively.
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