Long Position on WGO @ $27.20 on 10/15/2013 (Momentum)

Bullish Cup & Handle on WGOWinnebago Industries (WGO) 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.

Shares have formed a bullish "cup & handle" and are in the process of moving higher out of this formation.

52-Week Trading Range: $11.43 - $27.36

Entry Point: $27.20

Stop Loss: $25.80

Target Price: $29.85

Updates

10/22/2013 9:35:24 AM

WGO reached our target price. If you elect to stay in the position, raise your stop loss to $28.75 to protect your gains.

Position closed on 10/22/2013 at price of $29.88 with a 9.85% gain in 7 days.

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