Today’s recommendation comes from the technical analysis specialists at Investors Intelligence. Winmark Corp. (WINA) owns four franchise-based store brands selling used and new clothing and sports and music equipment. The company also has business credit and leasing arms.
“The Retailing bullish percentage was strong on Friday, gaining 2.0%. The group has been ‘bull confirmed’ since July 5. The stop loss for that status is not far off at 42%, so the risk to reward ratio remains favorable for new longs. The present move should extend up to at least 64%. ...
“Winmark Corp. (WINA) shows a nice reassertion attempt of its primary uptrend. The brief break of the rising support line looks to have been a bear-trap. The share now needs to rally through $60 to provide uptrend reassertion confirmation. Upon which we would expect a test of the high from earlier in the year at $71.49. If bought a stop loss could be placed at $50.”
- Michael Burke and John Gray, Investors Intelligence, August 6, 2012