HBI closes above its opening price after recovering from early selling pressure
Hanesbrands Inc. (HBI) Technical Analysis Report for Jun 25, 2020 | by Techniquant Editorial Team
HBI ended Thursday at 10.76 gaining $0.05 (0.47%) on low volume, underperforming the S&P 500 (1.1%). Trading up to $0.16 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 8th, HBI actually lost -0.83% on the following trading day. 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 Jun 25, 2020):
Thursday's trading range has been $0.34 (3.21%), that's far below the last trading month's daily average range of $0.60. 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.
The market managed to close back above the 100-day moving average at 10.70. Prices are trading close to the key technical resistance level at 11.03 (R1).
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 could accelerate should the share mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Hanesbrands. Out of 443 times, HBI closed higher 53.05% 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 53.50% with an average market move of 0.39%.