Winnebago Bearish Signs

Published on Tuesday, 13 December 2011 18:03 Written by Christopher Lynn

New York, December 13th (TradersHuddle.com) - Shares of Winnebago Industries, Inc. (NYSE:WGO) ended the trading session lower by $0.21 or -3.02% 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), is a leading U.S. manufacturer of recreation vehicles, which are used primarily in leisure travel and outdoor recreation activities. The Company builds quality motor homes, travel trailers and fifth wheel products under the Winnebago, Itasca, ERA and SunnyBrook brand names. Winnebago Industries has received the Quality Circle Award from the Recreation Vehicle Dealers Association every year since the award's inception in 1996.

Winnebago's current stock range is defined by calculated support defined at $6.02 and by the resistance level at $7.01, 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: