Gildan Activewear (GIL) Holds $40

Gildan Activewear, Inc. (GIL) engages in the manufacture and sale of printwear and branded apparel. Its products include activewear, underwear, socks, hosiery, and legwear. The firm operates under the brand name Gildan, American Apparel, Comfort Colors, Gold Toe, Anvil, Secret, Silks, Kushyfoot, Peds, and Mossy Oak. 

Take a look at the 1-year chart of Gildan below with the added notations…

Over the past three months, GIL has formed an important level to watch at the $40 (blue) mark, as that level has provided both support and resistance. The stock is sitting just above that level now, and a rally could take hold from there.

A trader could enter a long position on another pullback to that level with a stop placed below it. However, if traders are bearish on the stock, a short trade could be made on a break below the $40 mark.

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!

Good luck!

Christian Tharp, CMT

@cmtstockcoach