Shares of recreational vehicle maker Polaris Industries is on the verge of a breakout. The stock has rebounded nicely off the mid March lows and now appears ready to gain steam. PII is piercing a key overhead trendline this morning as it extends the gain off last month’s low to 13%.
Support is building under PII this week. We consider the stock a low risk buy at current levels. A close back below last week’s high($86) would indicate more sideways action is ahead. If shares can pick up some intense buying interest a run up to the 200 day moving average is likely.
Highlights: During the December flush PII reached extremely oversold levels. Daily MACD has been trending around the neutral area for the last ten weeks. There is plenty of room for it move higher.
PII sports a fairly high short interest ratio(7.3). The pressure will be very intense on the bears once the March highs are cleared.
HOG is performing quite well today, its a top SP 500 gainer.
PII earnings are due April 23(AM).
We are have opened a small long position in PII($89.01).