HBI closes lower for the 2nd day in a row
Hanesbrands Inc. (HBI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HBI finished the month 25.16% higher at 14.13 after losing $0.13 (-0.91%) today on high volume, significantly underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (HBI as at Jul 31, 2020):
Friday's trading range has been $0.70 (4.86%), that's slightly above the last trading month's daily average range of $0.60. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for HBI.
After trading down to 13.86 earlier during the day, the share bounced off the key technical support level at 13.89 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on Monday, HBI gained 0.35% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the two 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 427 times, HBI closed higher 55.50% 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 51.99% with an average market move of 0.06%.