The recreational vehicle (RV) stocks are starting to pullback from a very overbought condition on the charts. Leading RV stocks such as Winnebago Industries Inc (WGO), Thor Industries Inc (THO), Camping World Holdings Inc (CWH) and others are all retreating today. This industry group just made new all time highs on March 17th, 2021. So far, the pullback has been sharp for this sector since that recent high. The trend for the industry group is still up, but this sector is very overbought on the large time frames and looks overdue for a further decline.
I’m watching Camping World Holding Inc (CWH) very closely. This stock topped out on March 17th, 2021 at $44.00 a share. Today, the stock is trading lower by $1.59 to $38.46 a share. CWH stock is still trading above its important 50-day moving average, but a close below it should signal further weakness near term. Traders should watch for solid daily chart support around the $33.00 level. This is where the stock was defended on March 5th, 2021 before making a new all time high. This level should be defended when initially tested again for a short term bounce.
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