During Wednesday's "Mad Money," one caller asked about Winnebago Industries (WGO) .
"I think Winnebago is back," replied host Jim Cramer.
Let's check out the charts of this classic American maker of motor homes.
In this daily bar chart of WGO, below, we can see a pretty positive-looking chart. Prices fell sharply but recovered very quickly. WGO is back above the rising 50-day moving average line and the bullish (rising) 200-day moving average line. The movement of the On-Balance-Volume (OBV) line is amazing. The line hardly dips at all in February and March, and is now at a new high for move up. Buyers of WGO have been more aggressive the past twelve months. The Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line in late April for a buy signal which is still going strong.
In this weekly bar chart of WGO, below, we can see that prices have been in a very large sideways trading range the past three years. Prices look poised for an upside breakout. WGO is above the rising 40-week moving average line. The weekly OBV line has been bullish since the end of 2018 and just made a new high for the move up. This strong OBV line could be foreshadowing new price highs. The weekly MACD oscillator is close to crossing the zero-line for a buy signal.
In this Point and Figure chart of WGO, below, we can see that the software is projecting a potential price target of $91.
Bottom line strategy: WGO has made a big rally from the March low, so a short period of sideways prices action would be welcomed. Use this anticipated consolidation to go long risking below $50. The $91 area is our price objective.
