SATS breaks below Friday's low
EchoStar Corporation (SATS) Technical Analysis Report for Feb 03, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, SATS finished Monday at 39.46 losing $0.45 (-1.13%), strongly underperforming the S&P 500 (0.73%). Today's close at 39.46 marks the lowest recorded closing price since December 12, 2019. Closing below Friday's low at 39.73, the market confirmed its breakout through the prior session low after trading up to $0.39 below it intraday.
Daily Candlestick Chart (SATS as at Feb 03, 2020):
Monday's trading range has been $0.89 (2.22%), that's slightly above the last trading month's daily average range of $0.86. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SATS.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 39.87 (now R1), which is likely to act as resistance going forward. The last time this happened on January 22nd, SATS actually gained 0.24% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 41.89.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Trading close to December's low at 38.77 we might see further downside momentum if potential sell stops at the level get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for EchoStar. Out of 35 times, SATS closed lower 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 short side has been after 10 trading days, showing a win rate of 57.14% with an average market move of -1.00%.