HBI climbs to highest close since December 12, 2019
Hanesbrands Inc. (HBI) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
HBI ended the week 6.44% higher at 15.04 after gaining $0.77 (5.4%) today, strongly outperforming the S&P 500 (0.06%). This is the biggest single-day gain in over three weeks. Today's close at 15.04 marks the highest recorded closing price since December 12, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 14.84, the market confirmed its breakout through the previous session high after trading up to $0.21 above it intraday.
Daily Candlestick Chart (HBI as at Aug 07, 2020):
Friday's trading range has been $0.89 (6.24%), that's above the last trading month's daily average range of $0.61. 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 slightly higher than usual for HBI.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on July 8th, HBI actually lost -5.28% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After having been unable to move lower than 14.24 in the prior session, the share found buyers again around the same price level today at 14.16.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 15.60 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Hanesbrands. Out of 93 times, HBI closed lower 55.91% 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 53.76% with an average market move of -0.80%.