Gildan Activewear (GIL), marketer and manufacturer of, well, activewear, reported Q4 earnings of $0.42 / share Thursday before the bell, beating estimates by $0.09. Shares gapped up 10% on the day, inciting no less than 9 analysts to raise their targets on the stock, with target prices ranging as high as $27. Still, shares traded down 3% on Friday.
Thursdays pop pushed GIL above resistance dating back to late August, but by Fridays close it was a hair below the old supply/demand battlefront. Unlike Fridays pullback, Thursdays move was on high volume, and all of GIL’s moving averages are in good shape.
So, while the stock remains in a good position, you’ll want to see at least a couple consecutive closes above August resistance before you jump in headfirst.
Disclosure: No positions in the companies mentioned.
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