SAVE breaks below Thursday's low
Spirit Airlines Inc. (SAVE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, SAVE ended the month -11.18% lower at 15.81 after losing $0.43 (-2.65%) today, notably underperforming the S&P 500 (0.77%). Today's close at 15.81 marks the lowest recorded closing price since June 2nd. Closing below Thursday's low at 15.94, the market confirmed its breakout through the previous session low after trading up to $0.52 below it intraday.
Daily Candlestick Chart (SAVE as at Jul 31, 2020):
Friday's trading range has been $0.84 (5.24%), that's slightly below the last trading month's daily average range of $1.03. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SAVE.
After trading down to 15.42 earlier during the day, the stock bounced off the key technical support level at 15.70 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on July 16th, SAVE actually lost -2.49% on the following trading day. After having been unable to move above 16.38 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 16.26.
Spirit Airlines shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 16.97 where further buy stops might get triggered.
Among the six 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 Spirit Airlines. Out of 369 times, SAVE closed higher 57.45% 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 59.08% with an average market move of 1.17%.