RVs are proving the perfect way to travel and still remain isolated. He said demand has been strong throughout the U.S. and also in Europe.
Customers are rediscovering RVs in many different ways, whether it's buying a new RV to serve as a mobile office or refurbishing an older RV to run a small business out of.
Martin noted that Thor's business model is dynamic, allowing them to lever up and down production as demand dictates while still remaining profitable. Let's check and see if the charts can provide some profitable opportunities.
In this daily bar chart of THO, below, we can see that prices have broken out above the highs of February. THO is above the rising 50-day moving average line so we know that the shorter-term trend is bullish but THO is also above the rising 200-day moving average line.
We can also see that the 50-day line is crossing above the 200-day line for a bullish (but belated) buy signal.
The daily On-Balance-Volume (OBV) has been rising since early April and tells us that buyers of THO have been more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has been in a bullish alignment since crossing above the zero line in late April.
In this weekly bar chart of THO, below, we can see some bullish clues. Prices broke out over the February high and the slope of the 40-week moving average line is now bullish. There are two bullish divergences worth noting.
First, when prices made a new low for the move down in March the weekly OBV line made a higher low. Traders and investors were not aggressive sellers into the March nadir.
Second, the MACD oscillator made a similar bullish divergence with a higher low on the oscillator even when prices made a lower low.
In this first Point and Figure chart of THO, below, we used daily price data. Here the chart shows a potential price target of $119. Not all that far away.
In this second Point and Figure chart of THO, below, we used weekly price data. Here the software is projecting a longer-term potential price objective of $163.
Bottom line strategy: THO could travel further on the upside but right now prices are extended (overbought if you will) and a sideways to lower correction is likely to unfold before further gains. A pullback to around $90 would not be unusual and likely a better buying opportunity. Risk a close below $84 if you decide to go long.