SATS closes within previous day's range
EchoStar Corporation (SATS) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
SATS finished Thursday at 41.73 gaining $0.10 (0.24%), slightly outperforming the S&P 500 (0.11%). Trading up to $0.44 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 15th, SATS gained 1.24% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SATS as at Jan 23, 2020):
Thursday's trading range has been $0.88 (2.12%), that's slightly above the last trading month's daily average range of $0.85. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SATS.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the In-Neck Pattern.
Prices are trading close to the key technical resistance level at 41.96 (R1).
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "In-Neck Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EchoStar. Out of 5 times, SATS closed higher 60.00% 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 two trading days, showing a win rate of 60.00% with an average market move of 0.10%.