DISH dominated by bears dragging the market lower throughout the day
DISH Network Corporation (DISH) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DISH ended the month -6.95% lower at 32.11 after losing $0.73 (-2.22%) today on high volume, strongly underperforming the S&P 500 (0.77%) ahead of Monday's earnings report. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 32.56, the stock confirmed its breakout through the prior session low after trading up to $0.89 below it intraday.
Daily Candlestick Chart (DISH as at Jul 31, 2020):
DISH is set to report earnings on Monday. For the upcoming report, analysts expect the company to have earned $0.57 per share. The company's last earnings report was released on May 7, 2020, when DISH Network Corporation reported earnings of $0.13 per share failing market expectations by -77.2%.
Friday's trading range has been $1.65 (4.95%), that's far above the last trading month's daily average range of $1.08. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for DISH.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on March 23rd, DISH gained 14.27% on the following trading day.
After trading as low as 31.67 during the day, the market found support at the 200-day moving average at 31.69. After having been unable to move above 33.40 in the previous session, DISH Network ran into sellers again around the same price level today, missing to move higher than 33.32.
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to July's low at 30.42, downside momentum could speed up should DISH mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Its common bullish interpretation has been confirmed for DISH Network. Out of 13 times, DISH closed higher 53.85% 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 61.54% with an average market move of 1.97%.