HBI stuck within tight trading range
Hanesbrands Inc. (HBI) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
HBI finished Tuesday at 14.26 losing $0.06 (-0.42%), underperforming the S&P 500 (0.36%). Trading $0.31 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on July 30th, HBI lost -0.91% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HBI as at Aug 04, 2020):
Tuesday's trading range has been $0.47 (3.29%), that's slightly below the last trading month's daily average range of $0.60. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for HBI. Prices continued to consolidate within a tight trading range between 13.86 and 14.61 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Bearish Spinning Top which are both known as bearish patterns.
Prices are trading close to the key technical support level at 13.89 (S1). The market ran into sellers again today around 14.61 for the third trading day in a row after having found sellers at 14.52 in the prior session and at 14.56 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 13.86 where further sell stops could get triggered.
Among the seven 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 364 times, HBI closed higher 54.12% 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 54.67% with an average market move of 0.44%.