SATS dominated by bears dragging the market lower throughout the day
EchoStar Corporation (SATS) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
SATS ended the week -3.75% lower at 41.33 after losing $0.40 (-0.96%) today, slightly underperforming the S&P 500 (-0.9%). Today's close at 41.33 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 prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SATS as at Jan 24, 2020):
Friday's trading range has been $0.54 (1.29%), that's far below 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 above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SATS.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Bearish Short Candle showed up on January 10th, SATS actually gained 0.62% on the following trading day.
Prices are trading close to the key technical resistance level at 41.96 (R1). After having been unable to move above 41.89 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 41.82.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might speed up should prices move below the close-by swing low at 40.94 where further sell stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EchoStar. Out of 70 times, SATS closed higher 57.14% 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 54.29% with an average market move of -0.04%.