From around the beginning of July, the Harley Davidson Stock (NYSE: HOG) has been moving sideways, roughly between the 22.57 and 29.61 levels. Lately, the share price has been hanging around near the upper bound of that range, what may keep the buyers interested for a while. However, in order to get excited with the upside, a break of that upper side of the range is needed, hence our neutral approach for now.
If, eventually, we do see a strong move above the aforementioned 29.61 hurdle, or even above the highest point of July, at 29.91, that would confirm a forthcoming higher high, potentially inviting more buyers into the game. HOG could then rise to the 31.21 obstacle, or even to the 33.06 zone, marked by the low of January 31st. If the share price gets a hold-up near that zone, it might even correct slightly lower. That said, if the stock continues to balance somewhere above the upper bound of the aforementioned range, we may see another uprise. If this time the buyers are able to push HOG above the 33.06 area, that might open the way towards the 34.95 level, marked near the high of February 12th and the low of February 21st.
The MACD continues to point higher, while balancing above zero and its trigger line, which supports the upside scenario. The RSI, on the other hand, supports the idea of waiting for a break above the upper bound of the range first, as the indicator is showing positive price momentum, but is currently pointing fractionally to the downside.
Alternatively, if the stock drops back below the 26.71 hurdle, marked by the inside swing low of September 1st, this may result in a move lower within the range, as some new buyers might get spooked from entering at that point in time. Such a move would once again place HOG below all of its EMAs, potentially opening the door for a push to the 24.58 obstacle, or even the 22.57 level. As we know, that level marks the lows of June 26th and September 25th, and also is the lower bound of the aforementioned range.
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