NEW YORK (TheStreet) -- Recreational-vehicle maker Winnebago (WGO) - Get Report may need to top earnings estimates when it reports on Thursday to break its stock's technical downtrend.

The shares have been trending down on their daily chart since December 2013. The pattern of lower highs and lower lows began from a multiyear high of $32.41 set on Dec. 9, 2013. The last lower low was $18.82 set on Jan. 28.

A positive reaction to earnings would keep the weekly chart for Winnebago positive, which should break the daily downtrend.

Analysts expect the company to report earnings of 38 cents a share for its fiscal second quarter ended in February. Watch for the company's outlook as projected sales could be helped by lower fuel costs. Some analysts think that there could be a short-squeeze on the stock.

Let's take a look at the performance measures for Winnebago, key trading levels, and analysis of daily and weekly charts.

Winnebago ($23.99 at Tuesday's close) lost 21% in 2014, and is up 10% so far in 2015. The stock is 26% below its Dec. 9, 2013 high and is 28% above its 2015 low of $18.82 set on Jan. 28.

Investors looking to buy Winnebago after earnings should place a good-till-canceled limit order to purchase the stock if it drops to $20.69, which is a key level on technical charts until the end of June.

Investors looking to reduce holdings after earnings should place a good-till-canceled limit order to sell the stock if it rises to $30.18, which is a key level on technical charts until the end of the March.

Let's take a look at the daily chart for Winnebago.


Courtesy of MetaStock Xenith

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The daily chart shows that the stock declined to its 200-day simple moving average (green line) of $24.35 on Jan. 22, 2014.

The stock rebounded to $28.90 on March 13, 2014, and then the pattern of lower highs and lower lows began in what technicians call a downtrend. The stock has been below its 200-day simple moving average since April 10. The average was tested as an upside resistance on July 7, and again on Sept. 19.

Note the lower lows on Oct. 20 and on Jan. 28, with a lower high in between on Dec. 3. From the high on Dec. 9, 2013 to the low set on Jan. 28, the stock declined by 42%.

Going into earnings, the shares are above their 200-day simple moving average of $23.10, with its 50-day simple moving average (blue line) at $21.61.

Let's take a look at the weekly chart for Winnebago.


Courtesy of MetaStock Xenith

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The weekly chart would stay positive given a close this Friday above the stock's key weekly moving average of $22.61. The momentum reading shown in red along the bottom of the chart is projected to rise to 64.66 from 55.68 last week. The 200-week simple moving average (green line) at $17.80 is a significant level of technical support.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stock mentioned.