HBI finds buyers at key support level
Hanesbrands Inc. (HBI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HBI finished the month 14.5% higher at 11.29 after gaining $0.14 (1.26%) today, slightly underperforming the S&P 500 (1.54%). Closing above Monday's high at 11.21, the market confirmed its breakout through the prior session high after trading up to $0.32 above it intraday.
Daily Candlestick Chart (HBI as at Jun 30, 2020):
Tuesday's trading range has been $0.51 (4.57%), that's slightly below the last trading month's daily average range of $0.61. 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.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 18th, HBI actually lost -3.90% on the following trading day.
After trading down to 11.02 earlier during the day, the share bounced off the key technical support level at 11.03 (S1). The failure to close below the support could increase that levels significance as support going forward.
Hanesbrands shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 11.57 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Hanesbrands. Out of 424 times, HBI closed higher 55.42% 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 52.12% with an average market move of -0.00%.