Here’s your trade on Winnebago ($WGO) (December 11, 2020)
WGO
I want to go into Winnebago ( NYSE: WGO ) here. I haven’t looked at this stock in quite a while and I will tell you why, there is really no magic to it, because the stock has been moving down. When stocks are drifting lower like this it’s really simple, I don’t like to pick when they are going to move higher. I don’t like to pick when they are going to stop going down. I just have it on a list and every once in a while I look at it and move on because nothing is exciting.
Well, I won’t tell you that this is exciting but it could be starting to get exciting because I want to look at this in a real kind of a microscopic view. So you see this downtrend here; for the most part, we connect this dot and this one and then kind of right around there and here, you just kind of drag this line down. The resistance line is right down there.
The stock finally broke through this is late November and since that time it rallied up, almost hit 60.00, pulled back; pretty big volume here, a little bit higher than average. Then the following day, Wednesday, a big high magnitude move down but on lower volume. Thursday, boring, yawn, not that much volume, but then on Friday, today, the stock gapped and ran. So it’s right back up to where is was here, this is the top, this is the bottom of this box so this stock is just about ready to break out.
I would say if the stock runs up to, say 59.00, I wouldn’t even wait for 60.00; if the stock runs up to, say 59.10, I think you could take a shot and start a position, not a full position because $60.00 is a logical place for supply to be hiding. But if you take a small position in the stock and then add to that position; if Winnebago ( NYSE: WGO ) runs above $60.00 I think this could work, I think it could work really well. And then I would just put a stop right underneath Thursday’s intraday low of 54.15. I would put a stop at 54.10; that’s your trade.
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