Since we're rerunning the Harley-Davidson show on WallStrip today I thought I'd update the chart read I did when the show originally ran in late October. Here's what I said back then:
Harley looks fine to me as long as if stays within the channel its been in since the summer. If I were stalking it for a purchase I’d try to get in as close to the 20-day moving average as I could. If it drops past there $70 looks like decent support. Under 70 I’d start to get a little nervous but it’s still probably OK as long as the 67.50 area holds. Any lower than that and I’d be gone.
And here's the current chart:
Obviously, with that breakdown out of the channel I don't like the stock nearly as much as before. If I was already in it from much lower I'd still hang on. But I wouldn't want to put new money into it until it showed some strength. Right now it's trapped between that 7.50 support at the 50-day moving average. A solid break of either level will be very important technically.
