Stock Price Trends

Harley-Davidson Inc (HOG)

Harley-Davidson, Inc. manufactures and sells custom, cruiser and touring motorcycles. The company is headquartered in Milwaukee, Wisconsin.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 19.51% per annum.
  • HOG price at the close of November 20, 2024 was $32.49 and was higher than the top border of the primary price channel by $10.06 (44.88%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 2.06% per annum.
  • HOG price at the close of November 20, 2024 was inside the secondary price channel.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of HOG price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: March 31, 2021
End date: July 27, 2022

a = 4.0518

b = -0.0006

s = 0.0720

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0006) – 1
= -19.51%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0720) – 1
= 33.39%

March 31, 2021 calculations

Top border of price channel:

Exp(Y340)
= Exp(a + b × X340 + 2 × s)
= Exp(a + b × 496 + 2 × s)
= Exp(4.0518 + -0.0006 × 496 + 2 × 0.0720)
= Exp(3.9010)
= $49.45

Bottom border of price channel:

Exp(Y340)
= Exp(a + b × X340 – 2 × s)
= Exp(a + b × 496 – 2 × s)
= Exp(4.0518 + -0.0006 × 496 – 2 × 0.0720)
= Exp(3.6129)
= $37.07

July 27, 2022 calculations

Top border of price channel:

Exp(Y673)
= Exp(a + b × X673 + 2 × s)
= Exp(a + b × 979 + 2 × s)
= Exp(4.0518 + -0.0006 × 979 + 2 × 0.0720)
= Exp(3.6138)
= $37.11

Bottom border of price channel:

Exp(Y673)
= Exp(a + b × X673 – 2 × s)
= Exp(a + b × 979 – 2 × s)
= Exp(4.0518 + -0.0006 × 979 – 2 × 0.0720)
= Exp(3.3257)
= $27.82

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 19.51% per annum.
  • HOG price at the close of November 20, 2024 was $32.49 and was higher than the top border of the primary price channel by $10.06 (44.88%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: July 13, 2021
End date: November 20, 2024

a = 3.6483

b = -0.0001

s = 0.1085

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0001) – 1
= -2.06%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1085) – 1
= 54.36%

July 13, 2021 calculations

Top border of price channel:

Exp(Y411)
= Exp(a + b × X411 + 2 × s)
= Exp(a + b × 600 + 2 × s)
= Exp(3.6483 + -0.0001 × 600 + 2 × 0.1085)
= Exp(3.8312)
= $46.12

Bottom border of price channel:

Exp(Y411)
= Exp(a + b × X411 – 2 × s)
= Exp(a + b × 600 – 2 × s)
= Exp(3.6483 + -0.0001 × 600 – 2 × 0.1085)
= Exp(3.3971)
= $29.88

November 20, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(3.6483 + -0.0001 × 1,826 + 2 × 0.1085)
= Exp(3.7614)
= $43.01

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.6483 + -0.0001 × 1,826 – 2 × 0.1085)
= Exp(3.3273)
= $27.86

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 2.06% per annum.
  • HOG price at the close of November 20, 2024 was inside the secondary price channel.