SBAC finds buyers around 279.52 for the third day in a row
SBA Communications Corporation (SBAC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
SBAC finished the week 2.06% higher at 289.96 after surging $8.67 (3.08%) today, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. This is the biggest single-day gain in over a month. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 284.33, the market confirmed its breakout through the previous session high after trading up to $6.26 above it intraday.
Daily Candlestick Chart (SBAC as at May 22, 2020):
Friday's trading range has been $11.07 (3.92%), that's slightly above the last trading month's daily average range of $10.01. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SBAC. Prices continued to consolidate within a tight trading range between 279.00 and 293.33 where it has been caught now for the whole last trading week.
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. The last time a Bearish Hikkake Pattern showed up on April 16th, SBAC actually gained 1.99% on the following trading day.
The stock managed to close back above the 50-day moving average at 282.25. The share found buyers again today around 279.52 for the third trading day in a row after having found demand at 279.49 in the prior session and at 279.00 two days ago.
Though SBA Communications is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 293.33 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 279.00 where further sell stops might get activated. As prices are trading close to May's high at 300.75, upside momentum could accelerate should SBAC mark new highs for the month.
Among the 15 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for SBA Communications. Out of 137 times, SBAC closed higher 54.01% 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 66.42% with an average market move of 1.46%.