Briggs & Stratton Corporation (NYSE: BGG)

Briggs & Stratton Corporation designs, manufactures, markets, and services air cooled gasoline engines for outdoor power equipment worldwide. It operates in two segments, Engines and Power Products. The Engines segment offers aluminum alloy gasoline engines for lawn and garden equipment applications, including walk-behind lawn mowers, riding lawn mowers, garden tillers, and snow throwers, as well as engines primarily to original equipment manufacturers for use in industrial, construction, agricultural, and other consumer applications that include generators, pumps, and pressure washers. It also manufactures and sells replacement engines, and service parts to sales and service distributors. The Power Products segment offers portable and standby generators, pressure washers, snow throwers, and lawn and garden powered equipment. This segment sells its products through various channels of retail distribution, including consumer home centers, warehouse clubs, mass merchants, and independent dealers under brands such as Briggs & Stratton, Snapper, Simplicity, Ferris, Snapper Pro, Murray, and Victa, as well as other brands consisting of Craftsman, John Deere, GE, and Troy-Bilt.

To review Briggs & Stratton's stock, please take a look at the 1-year chart of BGG (Briggs & Stratton, Inc.) below with my added notations:




BGG had been trading mostly sideways from March through August. However, during that period of time the stock created a key resistance level at $18.50 (navy). That resistance level was a 52-week high breakout when the stock broke above it in September. That breakout was a signal that the stock should be moving higher, which the stock did do. Now that BGG is pulling back, the old $18.5 resistance should provide support for the stock, which it has already done once this month.

The other thing to notice about BGG is the downtrending resistance (red) that the stock has created over the last month. Soon the stock will have to break through that resistance if the stock is to continue it's 52-week breakout move higher.