SBAC closes within previous day's range
SBA Communications Corporation (SBAC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SBAC ended Wednesday at 322.14 losing $1.21 (-0.37%), but still slightly outperforming the S&P 500 (-0.46%). 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 Sep 16, 2020):
Wednesday's trading range has been $7.53 (2.35%), that's slightly below the last trading month's daily average range of $8.22. 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 slightly higher than usual for SBAC.
One bearish candlestick pattern matches today's price action, the Shooting Star. The last time a Shooting Star showed up on June 3rd, SBAC lost -4.56% on the following trading day.
Prices are trading close to the key technical support level at 321.19 (S1).
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 might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 307.06.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for SBA Communications. Out of 437 times, SBAC closed higher 52.63% 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 62.47% with an average market move of 1.03%.