Clothing producer Hanesbrands (HBI) returned to the Green Favored Zone of the SIA S&P 500 Index Report yesterday after a 24.9% one-day jump in the share price in response to earnings sent the shares screaming up 111 spots in the rankings to 18th place. The shares are also up 200 spots in the last month.
Accumulation in Hanesbrands (HBI) shares accelerated dramatically yesterday with the shares blasting through $17.50 and taking a run at $20.00 for the first time since 2018 on a big spike in volume. The shares had previously snapped out of a downtrend, and yesterday’s breakout confirmed the start of a new uptrend by completing a bullish Ascending Triangle base pattern.
Next potential upside resistance appears in the $22.25 to $22.50 area where a measured move and a previous peak converge, followed on trend by the $25.00 round number and a measured $27.50. Initial support appears at the $17.50 breakout point.
Since a previous rally phase peaked back in October, Hanesbrands (HBI) shares had been in consolidation mode, establishing a higher low in December which kept its primary underlying uptrend intact. Yesterday, the shares broke out to the upside, blasting through $17.60 to complete a bullish Spread Double Top pattern and signal the start of a new upleg.
With the shares currently challenging $20.00, next potential upside resistance appears near $22.85 where a horizontal count and a previous high converge, followed by $23.75 based on a horizontal count, the $25.00 round number, and $29.00 based on a vertical count. Initial support appears near $18.40 based on a 3-box reversal.
With its bullish SMAX score increasing to 7, HBI is exhibiting near-term strength against the asset classes.
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