Winnebago Industries, Inc. (NYSE: WGO)

Winnebago Industries, Inc., together with its subsidiaries, manufactures and sells recreation vehicles primarily for use in leisure travel and outdoor recreation activities. It manufactures motor homes, which are self-propelled mobile dwellings that provide living accommodations and include kitchen, dining, sleeping, and bath areas, as well as a lounge; and optional equipment accessories, such as generators, home theater systems, king-size beds, upholstery, and interior equipment. The company offers motor homes constructed directly on medium- and heavy-duty truck chassis, which include engine and drivetrain components; motor homes built on van-type chassis onto which the motor home manufacturer constructs a living area with access to the driver's compartment under the Winnebago and Itasca brand names; and panel-type vans with sleeping, kitchen, and/or toilet facilities under the Era brand name. It also manufactures travel trailers and fifth wheel towable products under the Winnebago and SunnyBrook brand names, as well as original equipment manufacturing parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles. The company sells its products through independent dealers primarily in the United States and Canada. Winnebago Industries, Inc. was founded in 1958 and is headquartered in Forest City, Iowa.
Before discussing potential trading opportunities, please take a look at the 1-year chart of WGO (Winnebago Industries, Inc) below with my added notations:
WGO had been rallying for most of the last year until March. Over the last (4) months the stock has found support at the $18 level (blue). Last week the stock broke that $18 support. The breakdown occurred on a slight increase in volume, which should add validity to the breakdown.
The Tale of the Tape: WGO has broken its support at $18 and the stock should be moving lower. A short position could be entered on any rallies back up near $18 with a stop placed above that level. A break back above $18 would negate the forecast for a move lower.
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