SATS closes above its opening price after recovering from early selling pressure
EchoStar Corporation (SATS) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SATS ended Wednesday at 42.74 gaining $0.12 (0.28%), slightly outperforming the S&P 500 (0.19%). Trading up to $0.23 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SATS as at Jan 15, 2020):
Wednesday's trading range has been $0.58 (1.36%), that's far below the last trading month's daily average range of $0.87. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for SATS. Prices continued to consolidate within a tight trading range between 41.91 and 42.92 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on December 6, 2019, SATS actually lost -1.72% on the following trading day.
Though EchoStar 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 nearby swing low at 41.91 where further sell stops could get activated. With prices trading close to this year's high at 43.96, upside momentum might speed up should the stock be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for EchoStar. Out of 264 times, SATS closed higher 50.76% 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 54.17% with an average market move of 0.99%.