Camping World Holdings, Inc. (CWH) is a provider of a portfolio of services, protection plans, products, and resources for recreational vehicle (RV) enthusiasts. The stock is tumbling lower today after reporting earnings. Today, shares of CWH are trading lower by 18.3% to $43.54 a share. It should be noted that the stock has had an incredible year despite today’s decline. On March 18th, 2020 the stock was trading around $3.40 a share. Yesterday, the stock made a new high for the year at $42.49 a share. So it is safe to say the stock was priced for perfection and is declining after the earnings announcement.
Traders can easily see that the stock broke out of a two month base in early July. A backtest of the breakout level should be very solid support for CWH stock. Often, the institutional crowd will defend a stock around it’s prior breakout area. This important support level is around the $28.00 area. This level is also a very important daily chart retrace level which should add to odds of a likely bounce in the stock. I’ll be watching this level for a long side play in the CHW stock when it is tested.
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