Echostar Surges 30.76% In Four Days As Technicals Signal Strong Bullish Momentum

Echostar (SATS) surged 3.65% to close at $83.57 on September 9, 2025, marking its fourth consecutive daily gain with a cumulative 30.76% rally during this period, supported by elevated trading volume. This analysis evaluates the technical structure across key methodologies.
Candlestick Theory
The four-day surge formed consecutive long-bodied green candles, indicating strong bullish momentum. Resistance is evident near $85.37 (September 9 high), aligning with the psychological $85 level. Support emerges at $79.22 (September 9 low), with a stronger floor near $75.50 (September 8 low), which previously capped prices in August. The breakout from a multi-month base in late August featured a high-volume bullish engulfing pattern (August 26), confirming underlying strength.
Moving Average Theory
The 50-day MA ($55.23) maintains an upward slope above both the 100-day MA ($42.18) and 200-day MA ($33.64), confirming a sustained long-term uptrend. Recent prices have consistently traded above all three MAs since late August. The widening gap between the 50-day and longer-term averages suggests accelerating bullish momentum, though it may indicate short-term overextension.
MACD & KDJ Indicators
The MACD histogram remains positive but shows deceleration, suggesting momentum may be peaking. KDJ readings are deeply overbought (K:89, D:85, J:97), with all lines above 80 since September 5. This divergence between slowing MACD momentum and persistently overbought KDJ warns of potential near-term consolidation despite bullish trend confirmation.
Bollinger Bands
Price has hugged the upper Bollinger Band since the late-August breakout, reflecting extreme bullish momentum. Band width expanded dramatically on August 26 (70% gain), signaling volatility surge initiation. Recent sessions show bands contracting slightly, hinting at possible volatility normalization. The $85 resistance coincides with the upper band, reinforcing its technical significance.
Volume-Price Relationship
Volume patterns validate the uptrend. The August 26 breakout occurred on record volume (46.6M shares vs. 3M avg), confirming institutional participation. Follow-through days (September 8: 24.3M, September 9: 10.1M) displayed above-average volume, supporting trend sustainability. The 19% decline on August 1 saw amplified volume, establishing $26 as a major support zone.
Relative Strength Index (RSI)
The 14-day RSI reads 85, deep in overbought territory (>70) with no bearish divergence present. Historically, similar RSI peaks in March and June 2025 preceded 15-20% corrections. While extended RSI readings can persist in strong trends, current levels warrant caution for new long positions.
Fibonacci Retracement
Applying Fibonacci to the rally from the June 13 low ($16.84) to the September 9 high ($85.37) shows key support at retracement levels: 23.6% ($69.50), 38.2% ($58.70), and 50% ($51.10). The September 5 low ($66.18) respected the 23.6% level, establishing it as immediate support. Confluence exists at $58.70 (38.2% retracement + 50-day MA), forming a high-probability buying zone should consolidation occur.
Confluence and Divergences:
Confluence appears near $85, where candlestick resistance, Bollinger Band ceiling, and psychological resistance converge. However, a notable divergence exists between momentum oscillators (MACD deceleration + overbought KDJ/RSI) and price strength. This suggests the rally may pause or consolidate near current levels before attempting higher targets. Probabilistic support exists in the $69.50–$75.50 zone, aligned with Fibonacci and prior swing highs, which may attract buyers during any retracement. Overall technicals favor maintaining exposure to Echostar's primary uptrend.