This Apparel Stock Is Sitting Right At Resistance
Gildan Activewear, Inc. is engaged in the manufacturing and sale of printwear and branded apparel. Its products include activewear, underwear, socks, hosiery, and legwear. The firm operates under the brand name Gildan, Alstyle, American Apparel, Comfort Colors, GOLD TOE, Anvil, Secret, Silks, and Peds.
Take a look at the 1-year chart of Gilden (NYSE: GIL) below with the added notations:
Chart of GIL provided by TradingView
GIL has hit the $32 mark as resistance (yellow) on multiple occasions since the middle of May. The stock has made it up to that mark to start the week but could be set to pull back again. A break above $32 could lead to higher prices for GIL.
The Tale of the Tape: GIL has an important level of resistance at $32. A long trade could be entered on a break through that level, with a stop placed below it. However, if you are bearish on the stock, a short trade could be made on any rallies up to the $32 area.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT