Winnebago Industries (WGO- NYSE)
At the start of the week my watch list contained 5 of the best stocks set ups that I could find. These stocks are of highly-ranked, financially sound companies and have properly formed technical bases. Each of these buy candidates were published in my Sunday Stock Report. Each with their own individual trading criteria – such as a trigger price, trigger volume, maximum buy price, max stop loss, etc.
As regular readers know, when any particular stock from our watch list trades above its respective TRIGGER PRICE with the required TRIGGER VOLUME, that stock is then flashing our technical buy signal.
From this week’s concise watch list there was a clear technical buy signal first thing Monday in shares of WGO as broke out in typical fashion. This leader blasted to new highs, clearing our TRIGGER PRICE of $25.25 before closing Monday up better than +3% with a +143% increase in volume. The aggressive gains continued today.
I noted WGO as – “Solid action on Friday with a +2.7% gain on a +50% increase in volume. Does trade thinner with currently only 225K on average. Triple-digit percentage increases in the last three reported quarterly earnings comparisons. Is the second-strongest stock in the group next to Thor Industries (THO) which just broke out mid-week.”
By entering into this stock on the breakout we are properly positioned. We have the highs of the most recent base ($25.00) as our initial area of support, with lower support being offered by the stock’s 50 day moving average, currently at $23.47.