SATS finds buyers at key support level
EchoStar Corporation (SATS) Technical Analysis Report for Feb 07, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SATS ended the week -3.11% lower at 38.67 after tanking $0.74 (-1.88%) today, notably underperforming the S&P 500 (-0.54%). This is the biggest single-day loss in over two weeks. Today's close at 38.67 marks the lowest recorded closing price since October 25, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 39.29, the stock confirmed its breakout through the prior session low after trading up to $0.86 below it intraday.
Daily Candlestick Chart (SATS as at Feb 07, 2020):
Friday's trading range has been $1.04 (2.64%), that's above the last trading month's daily average range of $0.82. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SATS.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 38.43 earlier during the day, the market bounced off the key technical support level at 38.53 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on January 31st, SATS actually lost -1.13% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for EchoStar. Out of 469 times, SATS closed higher 53.52% 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 51.81% with an average market move of 0.76%.