HBI snaps to lowest close since June 1st
Hanesbrands Inc. (HBI) Technical Analysis Report for Jun 26, 2020 | by Techniquant Editorial Team
HBI finished the week -7.84% lower at 10.46 after losing $0.30 (-2.79%) today, slightly underperforming the S&P 500 (-2.42%). Today's close at 10.46 marks the lowest recorded closing price since June 1st. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HBI as at Jun 26, 2020):
Friday's trading range has been $0.52 (4.88%), that's slightly below the last trading month's daily average range of $0.60. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HBI.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar.
After trading as low as 10.28 during the day, the share found support at the 50-day moving average at 10.28. The market closed back below the 100-day moving average at 10.67. After having been unable to move above 10.78 in the prior session, Hanesbrands ran into sellers again around the same price level today, failing to move higher than 10.80. The last time this happened on June 15th, HBI actually gained 3.77% 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.
As prices are trading close to June's low at 9.86, downside momentum could speed up should HBI mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Hanesbrands. Out of 129 times, HBI closed higher 54.26% 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 two trading days, showing a win rate of 56.59% with an average market move of 0.43%.