No doubt, this new policy, if pursued by the U.S., would be argued before the WTO and have greater implications on other countries and goods/services. My post of November 12, 2016 made mention of the need for the new Trump administration and Congress to consider a number of factors so as not to, potentially, cause economic imbalances and a catastrophic domino effect on the rest of the world. This is a complicated issue and will bring forth many positions/arguments/considerations and may cause further instability in world equity, currency, financial, bond, and commodity markets until a resolution is reached.
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| Source: ZeroHedge |
In the meantime, HOG has broken below the intersection of the lower edge of a long-term uptrending channel and the middle of a shorter-term downtrending channel, as shown on the following monthly chart. This apex sits around the 44.40 level.
Major Fibonacci retracement support sits at 41.93 (50%), while major resistance is 49.94 (60%). Until price breaks above or below this range, we'll likely continue to see trendless, chaotic trading as this already-fragile U.S. company is tied up and used as a pawn in international trade disputes.
