HBI falls to lowest close since June 1st
Hanesbrands Inc. (HBI) Technical Analysis Report for Jun 24, 2020 | by Techniquant Editorial Team
HBI ended Wednesday at 10.71 losing $0.56 (-4.97%), notably underperforming the S&P 500 (-2.59%). Today's close at 10.71 marks the lowest recorded closing price since June 1st.
Daily Candlestick Chart (HBI as at Jun 24, 2020):
Wednesday's trading range has been $0.54 (4.88%), that's slightly below the last trading month's daily average range of $0.64. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HBI.
One bearish candlestick pattern matches today's price action, the Black Candle.
The share closed below the 100-day moving average at 10.73 for the first time since June 2nd. When this moving average was crossed below the last time on May 28th, HBI lost -3.43% on the following trading day.
Hanesbrands shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to June's low at 9.86, downside momentum might speed up should the market mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Hanesbrands. Out of 72 times, HBI closed higher 51.39% 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 69.44% with an average market move of 2.89%.