Hansen Natural: Has the Superstock Finally Topped Out?

The faster they rise, the harder they fall.. eventually. None have risen faster or been discussed more in trader circles then Hansen Natural (HANS) over the past couple years. With the stock rising parabolically with seemingly no end in sight, there will come a time when a significant correction will occur. It looks like that time is near.

The stock staged a climax run in early May on news of a distribution deal with Anheiser Busch and I don't think it's any coincidence that the stock met resistance right around 200. Major whole numbers often mark the end of a big run.

Shorting a great company like Hansen (HANS) can be a risky move in a market that may be putting in a bottom, but there are a few scenarios where the reward vs. risk might be favorable enough for short entry. One way I'd play this is to look for a low volume return to what is now resistance around the 20 day moving average at around 180. You see the stock dipping below that level with sizable volume yesterday which is the first time it's been below this support level since mid February.

On the other hand, there is some support in the stock at 170 and I'd be looking to play this on the short side should it break below that level with heavy volume (which would most likely happen only if the market breaks key support levels)