SAVE closes above its opening price after recovering from early selling pressure
Spirit Airlines Inc. (SAVE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SAVE finished Wednesday at 18.55 gaining $0.47 (2.6%), notably outperforming the S&P 500 (-0.46%). Today's close at 18.55 marks the highest recorded closing price since July 15th. Trading up to $0.41 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Tuesday's high at 18.50, the share confirmed its breakout through the prior session high after trading up to $0.40 above it intraday.
Daily Candlestick Chart (SAVE as at Sep 16, 2020):
Wednesday's trading range has been $1.19 (6.57%), that's above the last trading month's daily average range of $0.92. 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 SAVE.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on July 23rd, SAVE actually lost -2.20% on the following trading day.
After trading as low as 17.71 during the day, Spirit Airlines found support at the 20-day moving average at 17.80. Prices are trading close to the key technical resistance level at 18.94 (R1). After having been unable to move lower than 17.82 in the previous session, the market found buyers again around the same price level today at 17.71.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 18.94 where further buy stops might get activated. Further buying could move prices higher should the market test August's close-by high at 19.55.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for Spirit Airlines. Out of 57 times, SAVE closed higher 52.63% 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 68.42% with an average market move of 2.42%.