Neutral Short Term Pattern on Harley-Davidson

New York, October 11th (TradersHuddle.com) - Shares of Harley-Davidson, Inc. (NYSE:HOG) closed the trading day higher by $0.01 or 0.01% from its previous close. Harley-Davidson's price action formed what is considered to be a doji close, where the open and close prices are very close to each other, mainly signaling an indecision between buyers and sellers.

Harley-Davidson, Inc. (NYSE:HOG) manufactures and sells motorcycles. Its products include heavyweight touring, custom, and performance motorcycles, as well as a line of motorcycle parts, accessories, and general merchandise.

Harley-Davidson's trading range is defined by a trough, which marked calculated support at $40.59 and by a peak that set the resistance point at $43.79. These levels are closely watched by traders managing their positions.

Traders wanting to establish a position in Harley-Davidson or traders that are already holding the stock can use the doji close to their advantage, since the pattern present a short-term pause in the stock's price action. This pause results in an entry point for traders depending of which way the stock resolves this short-term indecision.

The Doji is an important candlestick pattern that provides information on their own and as components in a number of important patterns. Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns.

Any bullish or bearish bias is based on preceding price action and future confirmation. In the case of Harley-Davidson, given that the stock finished the session higher, bulls should monitor their positions for confirmation that the stock will continue higher by taking its intraday high. Below a Doji illustration:

{loadposition googlink}