Lindsay Corp. (LNN) has been on Poor Brother Tom's watchlist since early April, as it was making a run up from a cup with handle breakout in March. Since then, it's continued it's journey upward to a new high a smidge above $131 – a 61% increase above the pivot price near $81!

But the day after reaching its high, LNN sold off sharply, losing close to 13% on 3½ times normal volume. Much of the loss was due to general sector weakness (see MOO chart below), but regardless of the reason, LNN continued a downward until it bounced of its 50-day moving average (DMA). Over the next few weeks, it formed what now looks like a clear second-stage double bottom.

On Friday, the breakout occurred on strong volume. The last couple days, however, it has receded back toward the pivot price.

On Monday, Lindsay announced their earnings call for next Wednesday (6/18). The consensus analyst estimate is $1.22, which is a 96% increase over last year. While this looks like a good number, note that it is a significant deceleration in earnings from the previous two quarters (273% and 147%). Nevertheless, if LNN meets or beats expectations, I imagine the stock will rise nicely.

You can rest assured that I will be watching this one over the next week. There is good support near $111, and the 50 DMA is just below that price currently providing even more support. I would strongly consider buying on a dip to either of those levels, and holding through the earnings release. Signals to watch out for would include:

• Significant dip below 50 DMA (5% or more)
• Rumors that LNN will miss analyst expectations

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