I said earlier that "as the market goes, so do its constituent stocks." The price action in Hanesbrands (HBI) is a perfect example of that. And you don't have to be an expert technical analyst to figure out what's going on in this stock.
Hanesbrands has been trading higher within a trend channel, bounded by a resistance range to the upside and trend line support to the downside. That price channel gives traders a high probability range for HBI's trading to remain within, a big advantage when trying to figure out what to do with this stock. The most important level to watch in HBI is trendline support; it's a level where HBI has been able to catch a bid and reverse on its last seven drops, and it's likely to remain an important downside barrier.
When you're looking to buy a stock within a trend channel, buying after a bounce off of support makes sense for two big reasons: It's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). The 50-day moving average has been a good proxy for support over the course of the pattern; that's where I'd recommend putting a protective stop on this trade.
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