SBAC finds buyers again around 289.71
SBA Communications Corporation (SBAC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
SBAC ended the week 13.83% higher at 294.61 after gaining $4.83 (1.67%) today, strongly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 294.61 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 292.92, SBA Communications confirmed its breakout through the prior session high after trading up to $1.85 above it intraday.
Daily Candlestick Chart (SBAC as at Feb 14, 2020):
Friday's trading range has been $5.06 (1.74%), that's slightly below the last trading month's daily average range of $5.43. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SBAC.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 293.19 (now S1), which is likely to act as support going forward. After having been unable to move lower than 288.63 in the previous session, the market found buyers again around the same price level today at 289.71. The last time this happened on February 3rd, SBAC gained 1.84% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop 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 down towards the center of the Bollinger Bands at 261.20.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for SBA Communications. Out of 552 times, SBAC closed higher 56.34% 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 62.68% with an average market move of 1.01%.