SAVE snaps to lowest close since August 3rd
Spirit Airlines Inc. (SAVE) Technical Analysis Report for Oct 28, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, SAVE ended Wednesday at 15.56 tanking $0.97 (-5.87%), significantly underperforming the S&P 500 (-3.53%). Today's close at 15.56 marks the lowest recorded closing price since August 3rd. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (SAVE as at Oct 28, 2020):
Wednesday's trading range has been $0.74 (4.63%), that's slightly below the last trading month's daily average range of $0.77. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SAVE.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 15.93 (now R1), which is likely to act as resistance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Trading close to August's low at 14.65 we could see further downside momentum if potential sell stops at the level get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Spirit Airlines. Out of 177 times, SAVE closed higher 55.93% 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 55.93% with an average market move of -0.10%.