The technical picture of the Harley-Davidson Inc stock (NYSE: HOG) on our daily chart shows that the share price is resting on a medium-term upside support line taken from the low of February 2nd. At the same time, the stock is trading below a medium-term tentative downside resistance line taken from the high of May 18th. For now, we will take a neutral stance, as we wait for HOG to break through one of those lines, before examining the next short-term directional move.
If the share price drops below the aforementioned upside line and also below the 38.80 hurdle, marked by the current lowest point of August, that would confirm a forthcoming lower low. HOG might then drift to the 37.64 obstacle, or to the 36.19 hurdle, marked by the low of March 29th. If there are still no new buyers in sight at that price, the stock may continue sliding, potentially aiming for the 34.87 level, marked by the inside swing high of March 24th.
The RSI and the MACD are pointing lower. In addition to that, the RSI is below 50 and the MACD is below zero, but remains fractionally above its trigger line. Both indicators show negative price momentum, which supports the scenario discussed above.
Alternatively, if the share price rises above the previously discussed downside line and the 42.00 barrier, marked by the current highest point of August, that could attract more buying interest, as a forthcoming higher high would be confirmed. HOG may then rise to the 44.09 obstacle, a break of which might set the stage for a move to the 46.23 zone. That zone marks the high of July 12th.
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