The Hain Celestial Group, Inc. manufactures, markets, distributes, and sells organic and natural products. It operates in seven segments: the United States, United Kingdom, Tilda, Ella’s Kitchen UK, Canada, Europe, and Hain Ventures.
Take a look at the 1-year chart of Hain (NASDAQ: HAIN) with the added notations:
HAIN has a formed a repeated level of support at $20 (green), a mark that was also brief resistance in the beginning of September. The stock is sitting on that level again, and traders could be able to expect some sort of a bounce. However, if the $20 support were to break again, lower prices will likely follow, as they did in August.
The Tale of the Tape: HAIN has key support at $20. A trader could enter a long position at that level with a stop placed under it. If the stock were to break below the support, a short position could be entered instead.
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