Hanes Looks Good All Under
- Posted by Greg Harmon
- on February 6th, 2013
HanesBrands, $HBI, reported earnings Tuesday after the market closed and moved higher in the market Wednesday. With that report aside it is no free from the risk associated with earnings movements and ready to look at for a trade. The chart below shows both the risk and opportunity prior to earnings. Running higher in an AB=CD Harmonic pattern with a Potential Reversal Zone (PRZ) from 48 to 50.50, it had a hardly a pullback since the year end lows. Now with the bull flag
lows at 37.00 as a stop area you can trade this for the move higher. But with another perspective, you might want to wait for a break over the rising wedge developing in the CD leg to try it long. The wedge pictured below can always resolve either to the upside or the downside. With price at the top of the wedge and support for a break higher from the rising and bullish Relative Strength
Index (RSI) and a Moving Average Convergence Divergence indicator (MACD) that is about to cross to positive, a break over the wedge gives a target to 46, near the PRZ. A fall back to the bottom near 37 coincides with the other chart and a break below 37 triggers a target lower at 30.
Join the Dragonfly Capital Views Premium Membership
Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Premium Earnings 3-31-15
- Stock screens reinforce bias, but charts don’t lie
- A clear way to trade Fairway
- Premium Earnings 3-30-15
- Top Trade Ideas for the Week March 30, 2015: Bonus Idea
- Top Trade Ideas for the Week of March 30, 2015: The Rest
- Top Trade Ideas for the Week of March 30, 2015: The Rest Premium
- Top Trade Ideas for the Week of March 30, 2015: The Best
- SPY Trends and Influencers March 28, 2015
- Macro Week in Review/Preview March 27, 2015