SATS breaks below 50-day moving average for the first time since December 11, 2019
EchoStar Corporation (SATS) Technical Analysis Report for Jan 21, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SATS ended Tuesday at 41.97 tanking $0.97 (-2.26%), strongly underperforming the S&P 500 (-0.27%). Today's close at 41.97 marks the lowest recorded closing price since December 12, 2019. Closing below Friday's low at 42.18, the stock confirmed its breakout through the previous session low after trading up to $0.71 below it intraday.
Daily Candlestick Chart (SATS as at Jan 21, 2020):
Tuesday's trading range has been $1.44 (3.38%), that's far above the last trading month's daily average range of $0.87. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for SATS.
After trading down to 41.47 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. The market closed below the 50-day moving average at 42.00 for the first time since December 11, 2019. When this moving average was crossed below the last time on December 10, 2019, SATS lost -0.74% 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.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Its common bearish interpretation has been confirmed for EchoStar. Out of 74 times, SATS closed lower 59.46% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after four trading days, showing a win rate of 55.41% with an average market move of -0.11%.