SATS slides to lowest close since December 12, 2019
EchoStar Corporation (SATS) Technical Analysis Report for Jan 08, 2020 | by Techniquant Editorial Team
SATS ended Wednesday at 42.42 losing $0.97 (-2.24%), significantly underperforming the S&P 500 (0.49%). Today's close at 42.42 marks the lowest recorded closing price since December 12, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 42.82, the market confirmed its breakout through the prior session low after trading up to $0.46 below it intraday.
Daily Candlestick Chart (SATS as at Jan 08, 2020):
Wednesday's trading range has been $1.17 (2.7%), that's slightly above the last trading month's daily average range of $1.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SATS.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 41.96 (S1). The share closed below the 20-day moving average at 43.02 for the first time since December 12, 2019. When this moving average was crossed below the last time on December 3, 2019, SATS lost -2.91% on the following trading day.
Though the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the close-by swing low at 42.20 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for EchoStar. Out of 250 times, SATS closed lower 56.80% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 54.00% with an average market move of -0.12%.