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by Koos van der Merwe
When the market bottoms, it is always good to buy, but what?
Position: Accumulate
Koos van der Merwe
Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.
PRINT THIS ARTICLE
TREND-CHANNEL
A Thirst For Hansen Natural
06/20/11 02:59:49 PMby Koos van der Merwe
When the market bottoms, it is always good to buy, but what?
Position: Accumulate
| Based in Corona, CA, Hansen Natural Corp. (HANS) markets and distributes Hansen's Natural Sodas and other fruit drinks. Today the company is a marketer of all-natural beverages, hoping to put a smile on your face as a measure of their success. |
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| FIGURE 1: HANS, MONTHLY |
| Graphic provided by: AdvancedGET. |
| |
| Figure 1 shows how the price rose from $0.86 in January 2001 to a high 0f $68.71 by October 2007. The share price then fell along with the market correction, to a low of $20.45 by August 2008. The chart shows how volume dropped as the share price rose, suggesting a sign of weakness. The relative strength index (RSI) is at overbought levels, but a sell signal has not been given -- yet. |
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| FIGURE 2: HANS, DAILY |
| Graphic provided by: AdvancedGET. |
| |
| Figure 2, a daily chart, shows how the the price broke above its main resistance line at $62.58 on April 6, 2011, rising to a high of $73.80 by June 1, 2011. Since then, that price has been falling and the secondary support line suggests a low of $69.96 with a date of June 27. The 14-period RSI is also showing weakness. Volume, however, is inconsistent, with the last two days showing strong volume, first on a fall in the price, and then on a rise in the price. This does suggest uncertainty, but it also suggests that as the market recovers, the share price should rise to test the $73.80 level, if not move higher. HANS is definitely a share to place on one's watchlist to buy, especially as the price approaches the $70 level, or the RSI 50 level is broken on a downward move, and then again as the RSI recovers and moves above the 50 level. |
Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.
| Address: | 3256 West 24th Ave |
| Vancouver, BC | |
| Phone # for sales: | 6042634214 |
| E-mail address: | petroosp@gmail.com |
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