HBI breaks below Wednesday's low
Hanesbrands Inc. (HBI) Technical Analysis Report for Aug 06, 2020 | by Techniquant Editorial Team
HBI ended Thursday at 14.27 losing $0.47 (-3.19%), significantly underperforming the S&P 500 (0.64%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 14.35, the share confirmed its breakout through the prior session low after trading up to $0.11 below it intraday.
Daily Candlestick Chart (HBI as at Aug 06, 2020):
Thursday's trading range has been $0.60 (4.06%), that's slightly above the last trading month's daily average range of $0.59. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for HBI.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Regardless of a strong opening Hanesbrands 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 13.89 (S1). After having been unable to move above 14.78 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 14.84. The last time this happened on Tuesday, HBI actually gained 3.37% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 13.86 where further sell stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Hanesbrands. Out of 129 times, HBI closed higher 53.49% 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 two trading days, showing a win rate of 56.59% with an average market move of 0.45%.