While I love bacon, I did not intentionally pick another "pig"-themed headline (referring to my article on the "pig's ear" chart pattern at this link). For this morning's DecisionPoint "Diamond Mine" trading room (for Diamonds subscribers only), I ran my "Momentum Sleepers" scan and found today's ChartWatchers' Diamond of the Week - and it just so happens to have "HOG" as its stock symbol. Yes, Harley-Davidson is a true diamond in the rough going into next week.
Before I get to that, I wanted to let the Relative Rotation Graph (RRG) enthusiasts know that "Mr. RRG" himself, Julius de Kempenaer, will be joining me in this Monday's FREE DecisionPoint Trading Room (10/5/2020). Register right now to ensure your space and receive the recording if you can't attend! Julius will show us how he uses RRG to trade!
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Today's ChartWatchers "Diamond of the Week":
Harley Davidson Inc (HOG)
EARNINGS: 10/20/2020 (BMO)
Harley-Davidson, Inc. is engaged in the manufacture and sale of custom, cruiser and touring motorcycles. It operates through the following segments: Motorcycles & Related Products; and Financial Services. The Motorcycles & Related Products segment manufactures, designs and sells at wholesale on-road Harley-Davidson motorcycles as well as motorcycle parts, accessories, general merchandise and related services. The Financial Services segment is comprised of financing and servicing wholesale inventory receivables and retail consumer loans, primarily for the purchase of Harley-Davidson motorcycles. The company was founded by William Sylvester Harley, Arthur Davidson, Walter C. Davidson, Sr. and William A. Davidson in 1903 and is headquartered in Milwaukee, WI.
Nice breakout today on HOG! Yesterday, price had nearly closed up the gap and today it finished the job. The PMO has turned up and the RSI just hit positive territory. Volume is beginning to pick up. Price closed above the 20-EMA for the first time since it broke down. We now have a bullish "V" bottom. Once you see about 30% of the right side of the "V" form, the pattern has executed. The expectation of the pattern is a move past the left side of the "V". The SCTR just spiked, which suggests internal and relative strength.
The weekly chart is improving. The PMO had topped in overbought territory, but it is attempting to turn back up above its signal line. The RSI is only tenths of a point away from positive territory above net neutral (50). We also have rising bottoms on the OBV. I'm not pleased that price hit resistance at the 2019 low, but if it could get back there, that would be a tidy 14+% profit. If it can breakout from there, upside potential moves to nearly 60%. I'll feel more bullish in the intermediate term when the PMO actually turns up and the RSI moves above 50.
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Don't miss the October 5th free DP Trading Room! I will have guest Julius de Kempenaer from RRG Research. He will show us how he uses RRG to trade!
***Click here to register for this recurring free DecisionPoint Trading Room!***
Did you miss the 9/28 trading room? Here is a link to the recording (password: FT&&l3#K). For best results, copy and paste the password to avoid typos.
DecisionPoint Diamonds are becoming even more indispensable! Not only do you get 60 "Diamonds in the Rough" stocks/ETFs per month, with complete analysis including stops/targets... but there's a Friday Diamonds Recap that will look at the performance of each week's Diamonds and their prospects moving forward. Over the weekend, we clean the slate and start over again.
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Happy Charting! - Erin
Technical Analysis is a windsock, not a crystal ball.
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