HBI rallies, gaining $0.50 (3.18%) within a single day on high volume
Hanesbrands Inc. (HBI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
HBI ended Wednesday at 16.21 surging $0.50 (3.18%) on high volume, significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. Today's close at 16.21 marks the highest recorded closing price since October 22, 2019. Closing above Tuesday's high at 16.12, Hanesbrands confirmed its breakout through the prior session high after trading up to $0.32 above it intraday.
Daily Candlestick Chart (HBI as at Sep 16, 2020):
Wednesday's trading range has been $0.70 (4.43%), that's far above the last trading month's daily average range of $0.46. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently 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 August 12th, 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 15.66 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 August 10th, HBI gained 1.08% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 16.76, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Hanesbrands. Out of 431 times, HBI closed higher 50.58% 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 53.13% with an average market move of 0.39%.