HBI climbs to highest close since November 11, 2019
Hanesbrands Inc. (HBI) Technical Analysis Report for Aug 11, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, HBI finished Tuesday at 15.95 gaining $0.17 (1.08%), notably outperforming the S&P 500 (-0.8%). Today's close at 15.95 marks the highest recorded closing price since November 11, 2019. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HBI as at Aug 11, 2020):
Tuesday's trading range has been $1.75 (11.67%), that's far above the last trading month's daily average range of $0.68. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HBI.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
After having been unable to move lower than 14.93 in the prior session, Hanesbrands found buyers again around the same price level today at 15.00. The last time this happened on August 7th, HBI gained 4.92% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 14.42.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Hanesbrands. Out of 165 times, HBI closed higher 53.94% 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 55.15% with an average market move of 0.86%.