SBAC finds buyers again around 146.29
SBA Communications (SBAC) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
SBAC ended the week -3.41% lower at 147.61 after gaining $0.96 (0.65%) today on high volume, underperforming the S&P 500 (1.42%). Trading $2.10 higher after the open, SBA Communications was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, SBAC lost -4.15% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SBAC as at Oct 12, 2018):
Friday's trading range has been $3.66 (2.48%), that's above the last trading month's daily average range of $2.56. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SBAC.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 146.22 (S1). After having been unable to move lower than 146.22 in the prior session, the share found buyers again around the same price level today at 146.29.
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 though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 156.53.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 146.22 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for SBA Communications. Out of 105 times, SBAC closed higher 52.38% 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 75.24% with an average market move of 3.88%.