HBI fails to close above 20-day moving average
Hanesbrands Inc. (HBI) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
HBI ended Thursday at 11.46 gaining $0.40 (3.62%), significantly outperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. 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 Jul 02, 2020):
Thursday's trading range has been $0.55 (4.84%), that's slightly below the last trading month's daily average range of $0.59. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HBI.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 5th, HBI actually gained 2.24% on the following trading day.
Prices are trading close to the key technical support level at 11.03 (S1). After spiking up to 11.88 during the day, the market found resistance at the 20-day moving average at 11.64.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Its common bearish interpretation has been confirmed for Hanesbrands. Out of 53 times, HBI closed lower 50.94% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 62.26% with an average market move of -2.74%.