SBAC pushes through Thursday's high
SBA Communications Corporation (SBAC) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SBAC finished the week 4.2% higher at 169.79 after gaining $1.74 (1.04%) today on low volume, strongly outperforming the S&P 500 (-0.01%). Today's close at 169.79 marks the highest recorded closing price since December 14, 2018. Closing above Thursday's high at 168.21, the stock confirmed its breakout through the previous session high after trading up to $2.22 above it intraday.
Daily Candlestick Chart (SBAC as at Jan 11, 2019):
Friday's trading range has been $3.72 (2.22%), that's slightly below the last trading month's daily average range of $4.42. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SBAC.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 168.05 (now S1), which is likely to act as support going forward. The last time this happened on Monday, SBAC gained 1.62% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2018's high at 177.67 is within reach and we might see further upside momentum should the share manage to break out beyond. Further buying could move prices higher should the market test December's nearby high at 173.66.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for SBA Communications. Out of 316 times, SBAC closed higher 53.80% 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 61.39% with an average market move of 0.73%.