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Gildan Activewear Inc (GIL.TO) - January 9, 2024


At SIACharts, we compare head-to-head battles of thousands of stocks, commodities, mutual funds and exchange traded funds daily and rank them by who is winning the most in their respective universes. The top 25% are considered the Green Favored Zone, 26-50% make up the Yellow Neutral Zone and the bottom half of each league table is considered the Red Unfavored Zone.

Athletic clothing producer Gildan Activewear Inc (GIL.TO) has staged several upswings and downswings within the SIA S&P/TSX 60 Index Report over the last year. The last time we mentioned it in the November 3rd edition of the Daily Stock Report, the shares had just crossed up into the green zone where they stayed for nearly two months.

At the end of December, GIL.TO dropped out of the green zone. Its downswing has continued since then with the shares falling through the yellow zone and back down into the Red Unfavored Zone. Over the last month Gildan has dropped 28 positions to 36th place.

Candlestick Chart Falls Back Within a Range:

GIL.TO has spent the last three years stuck in a trading range approximately between $32.00 and $52.00 including an 18-month period in a narrower $35.00 to $45.00 zone. Back in November the shares finally took off and had a good run for 5 weeks before the wheels fell off.

Starting in mid-December, the shares peaked in a bearish Shooting Star where they shot up to retest their 2021 peak, failed to get through and quickly fell back under $50.00. Then the shares staged a breakaway gap to the downside on a big spike in volume, a sign that investors had turned decisively bearish. Since then, GIL.TO has been under distribution, falling five weeks in a row and dropping back to the middle of their long-term range.

Next potential downside support appears at support lines in the $35.00 to $37.50 range, then closer to $32.00. Initial resistance appears at the 10-week moving average near $46.20.

Point and Figure Chart Goes on a Downswing:

This 1% chart highlights the recent ups and downs of trading in Gildan Activewear (GIL.TO) shares. The shares spent the second half of 2022 and most of 2023 stuck in neutral, trending sideways in the wake of an early-2022 selloff. In November, accumulation resumed in a big way as the shares took off after breaking out of a six-month downtrend. This rally, while strong, turned out to be short-lived. The shares first pulled back in early December, consolidated around Christmas, and then launched into a new downleg with a Triple Bottom breakdown that has carried into 2024.

Horizontal counts and a 45-degree uptrend support line converge in an initial support zone of $38.40 to $39.55 with next support after that possible near $37.65 based on previous column lows. Initial resistance on a rebound appears near $44.15 based on a 3-box reversal.

With a bearish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 5 out of 10, GIL.TO is exhibiting short-term weakness across the asset classes.

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