Portfolio manager Exane cut Thor Industries ( THO) to an "underperform" fundamental rating with a $65 price target, and regional broker DA Davidson rated Thor a new neutral with a $78 target price Wednesday. Let's check out the charts and technical indicators before families hit the road for spring vacation.
In this daily bar chart of THO, below, we can see that prices have struggled the past 12 months. Prices have almost been cut in half. THO is trading below the declining 50-day moving average line and below the negatively sloped 200-day moving average line. The trading volume has increased since December as more traders seem to be getting the bearish message.
The On-Balance-Volume (OBV) line shows a decline into March telling us that sellers of THO have been more aggressive than buyers. The OBV has moved sideways since late March.
The Moving Average Convergence Divergence (MACD) oscillator has been bearish for most of the past year.
In this weekly Japanese candlestick chart of THO, below, we can see some recent upper shadows on the chart even after the stock has declined some $70 - traders are still rejecting the highs. The slope of the 40-week moving average line is negative.
The weekly OBV line shows a decline from last May. The MACD oscillator remains in a bearish alignment below the zero line.
In this daily Point and Figure chart of THO, below, we can see a potential upside price target in the $97 area. A trade at $77.49 is likely to weaken the chart.
In this weekly Point and Figure chart of THO, below, we can see a possible downside price target of $69.
Bottom line strategy: The share price of THO is down but I fail to find signs of new aggressive buying that is needed to form a bottom formation. Avoid the long side of THO but like an RV, keep dreaming of a purchase some day.
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