HBI closes higher for the 2nd day in a row
Hanesbrands Inc. (HBI) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HBI finished Monday at 15.78 gaining $0.74 (4.92%), strongly outperforming the S&P 500 (0.27%). Today's close at 15.78 marks the highest recorded closing price since November 11, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 15.05, Hanesbrands confirmed its breakout through the prior session high after trading up to $0.97 above it intraday.
Daily Candlestick Chart (HBI as at Aug 10, 2020):
Monday's trading range has been $1.09 (7.27%), that's far above the last trading month's daily average range of $0.63. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HBI.
One bullish candlestick pattern matches today's price action, the White Candle.
Crossing above the upper Bollinger Band for the first time since July 17th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 14.25 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on July 14th, HBI gained 14.26% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. With its 50-day moving average crossing above its 200-day moving average, the market has entered a so-called "Golden Cross" for the first time since July 31, 2019. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Its common bearish interpretation has been confirmed for Hanesbrands. Out of 50 times, HBI closed lower 50.00% 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 two trading days, showing a win rate of 60.00% with an average market move of -0.03%.