SATS breaks below Thursday's low
EchoStar Corporation (SATS) Technical Analysis Report for Jan 17, 2020 | by Techniquant Editorial Team
SATS finished the week 1.95% higher at 42.94 after losing $0.33 (-0.76%) today, strongly underperforming the S&P 500 (0.39%) ahead of tomorrow's Martin Luther King Jr. Day market holiday. Closing below Thursday's low at 42.96, the market confirmed its breakout through the prior session low after trading up to $0.77 below it intraday.
Daily Candlestick Chart (SATS as at Jan 17, 2020):
Friday's trading range has been $1.21 (2.79%), that's far above the last trading month's daily average range of $0.85. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for SATS.
In spite of a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on December 27, 2019, SATS lost -1.05% on the following trading day.
Although EchoStar is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 43.71 where further buy stops might get triggered. With prices trading close to this year's high at 43.96, upside momentum could speed up should the share 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 OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for EchoStar. Out of 847 times, SATS closed higher 51.36% 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 51.24% with an average market move of 0.31%.