SATS falls to lowest close since December 12, 2019
EchoStar Corporation (SATS) Technical Analysis Report for Jan 22, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, SATS finished Wednesday at 41.62 losing $0.35 (-0.83%), underperforming the S&P 500 (0.03%). Today's close at 41.62 marks the lowest recorded closing price since December 12, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SATS as at Jan 22, 2020):
Wednesday's trading range has been $0.87 (2.05%), that's slightly above the last trading month's daily average range of $0.85. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for SATS.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on January 10th, SATS actually gained 0.62% on the following trading day.
Prices broke below the key technical support level at 41.96 (now R1), which is likely to act as resistance going forward. After having been unable to move lower than 41.47 in the prior session, EchoStar found buyers again around the same price level today at 41.56.
While 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.
Selling might accelerate should prices move below the nearby swing low at 41.47 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for EchoStar. Out of 232 times, SATS closed lower 52.59% of the time on the next trading day after the market condition occurred.