SATS finds buyers at key support level
EchoStar Corporation (SATS) Technical Analysis Report for Jan 13, 2020 | by Techniquant Editorial Team
SATS finished Monday at 42.38 gaining $0.26 (0.62%), slightly underperforming the S&P 500 (0.7%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SATS as at Jan 13, 2020):
Monday's trading range has been $0.69 (1.64%), that's slightly 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 lower than usual for SATS. Prices continued to consolidate within a tight trading range between 41.92 and 42.88 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on January 6th, SATS gained 0.56% on the following trading day.
After trading down to 41.92 earlier during the day, the share bounced off the key technical support level at 41.96 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move lower than 41.98 in the previous session, the market found buyers again around the same price level today at 41.92.
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.
With prices trading close to this year's high at 43.96, upside momentum might accelerate should EchoStar be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for EchoStar. Out of 474 times, SATS closed higher 53.38% 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 52.74% with an average market move of 0.84%.