HBI closes lower for the 3rd day in a row
Hanesbrands Inc. (HBI) Technical Analysis Report for Jun 19, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, HBI finished the week -3.16% lower at 11.35 after losing $0.46 (-3.9%) today, strongly underperforming the S&P 500 (-0.56%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 11.55, Hanesbrands confirmed its breakout through the prior session low after trading up to $0.23 below it intraday.
Daily Candlestick Chart (HBI as at Jun 19, 2020):
Friday's trading range has been $0.82 (6.82%), that's above the last trading month's daily average range of $0.68. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HBI.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices are trading close to the key technical support level at 11.09 (S1). The market closed below the 20-day moving average at 11.51 for the first time since May 15th. When this moving average was crossed below the last time on May 11th, HBI lost -3.57% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the nearby swing low at 11.03 where further sell stops might get activated.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Hanesbrands. Out of 59 times, HBI closed higher 59.32% 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 59.32% with an average market move of 1.07%.