Echostar (SATS) Surges 4.78% on Bullish Technical Signals, Extends 7.92% Three-Day Rally

Echostar (SATS) has surged 4.78% in the most recent session, extending its upward momentum with a 7.92% gain over three consecutive days. This rally, supported by elevated trading volumes and a series of higher highs, suggests a short-term bullish bias. Below is a technical analysis integrating multiple frameworks to assess the stock’s current positioning and potential trajectory.
Candlestick Theory
The recent price action features a strong bullish continuation pattern, with consecutive higher closes and expanding candle bodies indicating aggressive buying pressure. Key support levels can be identified at prior swing lows such as $103.91 (December 19) and $100.89 (December 17), while resistance aligns with recent highs at $109.41 (December 22) and $111.39 (December 19). A breakdown below $103.91 could trigger a retest of earlier consolidation zones near $93.54, while a breakout above $109.41 may extend the rally toward $111.39. The formation of a "higher high" pattern in the last three sessions reinforces the near-term upside bias.
Moving Average Theory
The 50-day moving average (approximately $94.50 as of mid-December) and 200-day moving average ($85.50) are well below the current price, confirming a long-term bullish trend. However, the 100-day MA ($98.50) is closer to the recent lows, suggesting the stock has moved into overbought territory relative to its short-term momentum. The current price above the 50-day MA indicates strength, but a cross below the 100-day MA could signal a temporary pullback. Confluence between the 50-day and 100-day MAs (if they converge near $100) may act as a dynamic support zone.
MACD & KDJ Indicators
The MACD histogram has turned positive, with the fast line crossing above the signal line, reinforcing bullish momentum. However, the RSI (calculated using a 14-day period) has entered overbought territory (>70), suggesting a potential pullback or consolidation phase. The KDJ stochastic oscillator shows the %K line at 85 and %D at 80, indicating overbought conditions and a possible near-term reversal. Divergence between the MACD and KDJ (with MACD still rising while KDJ flattens) may hint at waning momentum, warranting caution on aggressive longs.
Bollinger Bands
Volatility has expanded recently, with the current price near the upper band at $109.41, reflecting heightened buying interest. The 20-day Bollinger Band width is above its 20-day average, signaling increased price swings. A retest of the lower band ($100.50) could trigger a rebound, but a sustained break above the upper band may push the stock toward $111.39. The recent contraction in volatility before the rally (noted around December 15–16) suggests a potential breakout was already anticipated.
Volume-Price Relationship
Trading volume has surged in the last three sessions, aligning with the price increase and validating the strength of the rally. The volume profile shows a "positive divergence" as volume increases with higher closes, supporting the sustainability of the uptrend. However, a sharp drop in volume during a pullback could indicate weakening conviction, while a surge in volume during a breakdown would heighten bearish concerns.
Relative Strength Index (RSI)
The RSI has spiked to 72, confirming overbought conditions and a potential overextension in the bullish move. While this does not guarantee an immediate reversal, it suggests a high probability of a short-term correction or consolidation. A close below the 60 threshold would signal a return to neutral territory, while a drop below 50 could indicate a shift in momentum.
Fibonacci Retracement
Applying Fibonacci levels from the December 8 low ($74.50) to the December 19 high ($111.39), key retracement levels include 23.6% ($96.50), 38.2% ($92.50), and 61.8% ($85.50). The current price near $108.88 is approaching the 78.6% retracement level ($103.00), which may act as a critical resistance. A break above this could target the $111.39 high, while a failure to hold above $103.00 may trigger a test of the 61.8% level.

Confluence and Divergences
The strongest confluence occurs at $103.91, where the 50-day MA, Fibonacci 38.2% retracement, and prior support converge. This level is critical for maintaining the bullish case. Divergences are evident between the overbought RSI and KDJ, suggesting caution despite the MACD’s positive signal. A breakdown below $103.91 would likely see the price test the $93.54–$98.50 zone, where Fibonacci 50% and 61.8% levels overlap.

In summary, Echostar’s technical profile suggests a continuation of the short-term bullish trend, supported by momentum indicators and Fibonacci levels, but with elevated overbought conditions signaling potential near-term volatility. Traders should monitor the $103.91–$109.41 range for directional clues, with volume and divergences in oscillators offering key signals for entry or exit points.