Trading Idea - Entry Levels for Winnebago

Published on Tuesday, 29 November 2011 18:28 Written by Christopher Lynn

New York, November 29th (TradersHuddle.com) - Shares of Winnebago Industries, Inc. (NYSE:WGO) finished near calculated support at $6.02.

Current price action with, the maker of self-contained recreation vehicles closed at $6.18 has left shares at a level that needs to be monitored closely by traders wanting to start or add into a position in the stock.

Winnebago's current stock range is defined by current calculated support defined at $6.02 and by the resistance level at $8.95.

The area defined as calculated support, is where we expect for buyers to likely materialize, which could provide a lift to the shares. However, this area if breached will signal participants that the stock failed to entice buyers to step in an support the stock.

Traders wanting to establish a position should pay close attention to Winnebago's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $8.95 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.