SATS declines to lowest close since December 12, 2019
EchoStar Corporation (SATS) Technical Analysis Report for Jan 10, 2020 | by Techniquant Editorial Team
SATS finished the week -2.23% lower at 42.12 after losing $0.34 (-0.8%) today, underperforming the S&P 500 (-0.29%). Today's close at 42.12 marks the lowest recorded closing price since December 12, 2019. Closing below Thursday's low at 42.15, EchoStar confirmed its breakout through the previous session low after trading up to $0.18 below it intraday.
Daily Candlestick Chart (SATS as at Jan 10, 2020):
Friday's trading range has been $0.46 (1.08%), that's below the last trading month's daily average range of $1.10. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SATS.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on September 24, 2019, SATS actually gained 1.10% on the following trading day.
Prices are trading close to the key technical support level at 41.96 (S1).
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for EchoStar. Out of 69 times, SATS closed higher 56.52% 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 55.07% with an average market move of -0.04%.