Hansen Natural Corp. - HANS - close: 55.30 change: +0.46

Stop Loss: 53.40
Target(s): 59.50
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The stock market is stubbornly clinging to its uptrend. There is a chance stocks could see some month end window dressing. If that's the case then we want to play stocks near their highs. HANS just broke out to new multi-year highs a few days ago. Broken resistance near $54.50 should offer some support. I want to play this with a stop loss at $53.40, which is a little tight for a volatile stock like HANS but if shares don't rally from current levels then we want to get out of this trade. I'm suggesting positions now or on dips near $54.50. Our target is $59.50. Small positions only to limit our risk.
FYI: I will point out that HANS produced a bearish engulfing candlestick yesterday but there was no confirmation of the reversal today. Meanwhile, the Point & Figure chart for HANS is bullish with a $81.00 target.

Open Small Positions Now

Suggested Position: HANS stock @ current levels

- or -

Buy the March $60 calls (HANS1119C60) current ask $1.30

Annotated chart:

Entry on January 26 at $xx.xx
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume: 654 thousand
Listed on January 25th, 2010