SBAC closes within prior day's range after lackluster session
SBA Communications Corporation (SBAC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
SBAC finished the month 4.57% higher at 311.54 after edging higher $0.13 (0.04%) today, underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SBAC as at Jul 31, 2020):
Friday's trading range has been $6.39 (2.04%), that's below the last trading month's daily average range of $8.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SBAC.
After trading down to 307.95 earlier during the day, the market bounced off the key technical support level at 309.83 (S1). The failure to close below the support could increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 315.84 (R1). After having been unable to move lower than 309.04 in the prior session, the share found buyers again around the same price level today at 307.95. The last time this happened on July 24th, SBAC gained 1.95% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 323.02, upside momentum might speed up should SBA Communications be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for SBA Communications. Out of 456 times, SBAC closed higher 60.75% 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 64.47% with an average market move of 1.27%.