Candlesticks - Bearish Engulfing Winnebago

Published on Tuesday, 24 August 2010 00:57 Written by Danny Miller

New York, August 24th (TradersHuddle.com) - Shares of Winnebago Industries, Inc. (NYSE:WGO) ended the trading session lower by $0.34 or -3.89% from its previous close. Winnebago's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Winnebago Industries, Inc. (NYSE:WGO) manufactures self-contained recreation vehicles used primarily in leisure travel and outdoor recreation activities. Its motor homes are sold through dealer organizations under the Winnebago, Itasca, Rialta, and Ultimate brand names. Winnebago also manufactures extruded aluminum, commercial vehicles, and components.

Winnebago's current stock range is defined by calculated support defined at $9.0401 and by the resistance level at $11.08, which should be used by traders planning their trades.

Traders wanting to establish a position in Winnebago stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Winnebago shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: