SATS slumps, losing $3.80 (-10.59%) within a single day on low volume
EchoStar Corporation (SATS) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
SATS finished the week 6.86% higher at 32.07 after tanking $3.80 (-10.59%) today on low volume, strongly underperforming the S&P 500 (-3.37%). This is the biggest single-day loss ever recorded for the share. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 33.10, EchoStar confirmed its breakout through the previous session low after trading up to $1.28 below it intraday.
Daily Candlestick Chart (SATS as at Mar 27, 2020):
Friday's trading range has been $3.60 (10.42%), that's far above the last trading month's daily average range of $2.24. Weekly volatility is also higher, being way 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. The last time a Black Candle showed up on February 26th, SATS lost -3.60% on the following trading day.
Prices are trading close to the key technical support level at 30.13 (S1). Prices broke below the key technical support level at 33.05 (now R1), which is likely to act as resistance going forward.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Its common bearish interpretation has been confirmed for EchoStar. Out of 412 times, SATS closed lower 50.73% 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 eight trading days, showing a win rate of 48.54% with an average market move of -0.01%.