HBI pushes through Friday's high
Hanesbrands Inc. (HBI) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
HBI ended Monday at 10.29 gaining $0.43 (4.36%), notably outperforming the S&P 500 (0.38%). Closing above Friday's high at 10.09, the market confirmed its breakout through the prior session high after trading up to $0.38 above it intraday.
Daily Candlestick Chart (HBI as at Jun 01, 2020):
Monday's trading range has been $0.61 (6.17%), that's slightly below the last trading month's daily average range of $0.61. 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 higher than usual for HBI.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on May 26th, HBI gained 5.71% on the following trading day.
Prices are trading close to the key technical support level at 9.78 (S1). Prices are trading close to the key technical resistance level at 10.81 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could accelerate should prices move below the close-by swing low at 9.65 where further sell stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Hanesbrands. Out of 655 times, HBI closed higher 51.45% 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 53.13% with an average market move of 0.40%.