HBI breaks below Wednesday's low
Hanesbrands Inc. (HBI) Technical Analysis Report for Aug 13, 2020 | by Techniquant Editorial Team
HBI ended Thursday at 15.60 losing $0.37 (-2.32%), notably underperforming the S&P 500 (-0.2%). Closing below Wednesday's low at 15.64, the share confirmed its breakout through the previous session low after trading up to $0.19 below it intraday.
Daily Candlestick Chart (HBI as at Aug 13, 2020):
Thursday's trading range has been $0.42 (2.65%), that's below 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 way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HBI.
One bearish candlestick pattern matches today's price action, the Black Candle.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 14.57. The last time this happened on July 20th, HBI lost -0.72% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Hanesbrands. Out of 531 times, HBI closed higher 51.41% 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 54.99% with an average market move of 0.94%.