Don't Ignore This Chart!

Harley Davidson (HOG) Goes Off Road

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Volume is triple its normal daily volume and Harley Davidson (HOG) is down more than 7% today, but technical analysis flashed many warning signs on both the daily and weekly charts.  First, let's look at the daily chart where price and gap resistance and a negative divergence all suggested HOG reached a pivotal level and possibly a top:


Furthermore, the weekly chart shows a clear downtrend in play over the past couple years and that was just tested as well:

HOG simply appears to be out of gas.

Happy trading!

Tom

 

 

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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