Gildan Activewear Inc (NYSE: GIL)

Gildan Activewear Inc. engages in the manufacture and sale of apparel products primarily in the United States, Canada, and Europe. It sells T-shirts, fleece, and sport shirts to wholesale distributors under the Gildan brand name. The company also provides its activewear products for work and school uniforms and athletic team wear, and other purposes to convey individual, group, and team identity. In addition, it offers apparel, which includes socks, underwear, and activewear products primarily to U.S. retailers; and athletic, casual, and dress socks for U.S. retailers. Further, the company holds contractual licensing relationships for the Under Armour and New Balance brands for socks; and manufactures and distributes activewear products for consumer brands, including T-shirts and sport shirts under the Anvil brand. It markets its sock products under the various brands, including Gold Toe, PowerSox, SilverToe, Auro, All Pro, GT, and Gildan brands. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was founded in 1984 and is headquartered in Montreal, Canada.
Please take a look at the 1 yr. chart of GIL (Gilden Activewear, Inc.) that I have shown below with my added notations:
GIL has formed a nice, uptrending channel over the last (7) months. A channel is simply formed through the combination of a trend line support that runs parallel to a trend line resistance. When it comes to a channel, I always tell my students that any (3) points can start the channel, but it's the 4th test and beyond that confirm it. You can see that GIL has multiple test points between the channel resistance (red) and channel support (blue). Following the GIL channel can provide you with both long and short trading opportunities.
The Tale of the Tape: GIL has formed a common chart pattern know as a channel, in this case, an up-channel. A long opportunity could be entered on a pullback to the channel support, which at this point is approaching $40. Short trades could be entered at channel resistance OR if GIL were to break below the channel support.
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