SATS finds buyers around 41.90 for the third day in a row
EchoStar Corporation (SATS) Technical Analysis Report for Jan 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SATS finished Tuesday at 42.62 gaining $0.24 (0.57%), outperforming the S&P 500 (-0.15%). Trading up to $0.34 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 42.61, the stock confirmed its breakout through the previous session high after trading up to $0.15 above it intraday.
Daily Candlestick Chart (SATS as at Jan 14, 2020):
Tuesday's trading range has been $0.86 (2.04%), that's slightly below the last trading month's daily average range of $0.92. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for SATS.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar.
After trading down to 41.90 earlier during the day, the share bounced off the key technical support level at 41.96 (S1). The failure to close below the support could increase that levels importance as support going forward. EchoStar found buyers again today around 41.90 for the third trading day in a row after having found demand at 41.92 in the prior session and at 41.98 two days ago. The last time this happened on December 27, 2019, SATS actually lost -1.05% on the following trading day.
Although SATS is currently in a short-term downtrend, this might 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 could speed up should the market be able to break out to new highs for the year.
Among the nine 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 475 times, SATS closed higher 53.47% 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 52.63% with an average market move of 0.84%.