Thor Industries (THO) receive an upgrade Thursday to a "buy" from TheStreet's Quant Ratings service. But what about the technicals?
When we covered THO on Dec. 22 we wrote that, "Traders could go long THO at current levels and/or on a rally above $101.37. Risk to $85 for now. The $115 area is our initial price objective." Prices have gone way beyond our $115 price target so we need to check the charts again.
In the daily bar chart of THO, below, we can see how prices have been climbing from late December. Our $115 price objective has been left in the dust so to speak. Prices are trading above the rising 50-day moving average line as well as above the rising 200-day line.
The trading volume has been active since November and the On-Balance-Volume (OBV) line has climbed to a new high to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator turned bullish in early December and is still bullish.
In the weekly Japanese candlestick chart of THO, below, we went back five years to get some perspective. Prices are testing the highs of late 2017. Prices were only in the $150-$160 area for a few weeks so I do not anticipate that this area will be acting as strong resistance. Prices are above the rising 40-week moving average line.
The weekly OBV line is moving in the right direction and the MACD oscillator is bullish.
In this daily Point and Figure chart of THO, below, we can see a price target in the $174 area.
In this weekly Point and Figure chart of THO, below, we see that $233 is a possible target.
Bottom-line strategy: If you are still long from our December recommendation -- great. Raise stop protection to $130. The $175 area is our next target and the $233 area may be reached over the next 12 months. Aggressive could add to longs on a shallow dip.
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