Harley Davidson - HOG - close: 42.30 change: +0.93

Stop Loss: 39.75
Target(s): 47.00, 49.75
Current Gain/Loss: + 0.0%
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
I mentioned HOG as a potential candidate in a recent editor's note. The stock just broke out from a four-week consolidation pattern. I am suggesting bullish positions now. However, this is a higher-risk entry point since HOG still has potential resistance at its February highs near $43.00. Readers will want to keep their position size small to limit our risk. We only have a few weeks since we will plan to exit ahead of the late April earnings report. I'd use a stop loss at $39.75.
FYI: The Point & Figure chart for HOG is bullish with an $82 target.

open bullish positions now

Suggested Position: buy HOG stock @ current levels

- or -

Buy the May $45 calls (HOG1121E45) current ask $0.95

Annotated chart:

Entry on March 31 at $xx.xx
Earnings Date 04/19/11 (unconfirmed)
Average Daily Volume: 2.0 million
Listed on March 30th, 2011