HBI closes below its opening price unable to hold early session gains
Hanesbrands Inc. (HBI) Technical Analysis Report for Jul 01, 2020 | by Techniquant Editorial Team
HBI ended Wednesday at 11.06 losing $0.23 (-2.04%), notably underperforming the S&P 500 (0.5%). Trading $0.20 higher after the open, Hanesbrands was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HBI as at Jul 01, 2020):
Wednesday's trading range has been $0.47 (4.16%), that's below the last trading month's daily average range of $0.58. 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.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. In spite of a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 11.03 (S1). After having been unable to move lower than 11.02 in the prior session, the market found buyers again around the same price level today at 11.04. The last time this happened on June 23rd, HBI actually lost -4.97% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 11.53 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Hanesbrands. Out of 361 times, HBI closed higher 53.74% 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 54.85% with an average market move of 0.31%.