HBI runs into sellers again around 9.19
Hanesbrands Inc. (HBI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
HBI ended Thursday at 8.95 edging higher $0.03 (0.34%), strongly underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HBI as at Mar 26, 2020):
Thursday's trading range has been $0.65 (7.2%), that's below the last trading month's daily average range of $0.99. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HBI.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on March 16th, HBI actually gained 16.95% on the following trading day.
After having been unable to move above 9.32 in the previous session, Hanesbrands ran into sellers again around the same price level today, missing to move higher than 9.19.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 8.15 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Hanesbrands. Out of 658 times, HBI closed higher 52.28% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 52.89% with an average market move of 0.34%.