SATS Likely To Trade Long-term Down/Sideways Trend | 21/8/2018
Hi guys, here’s my take on where SATS is likely to go in the medium term (of a few months).
Currently, SATS is on a clear downwards trend with the trend support and resistance clearly marked out by the two lines that I drew. At the moment, it seems as though the SATS share price is likely to see downwards pressure as it bounces down towards the trend support since it has recently bounced down from trend resistance.
These kind of patterns often results in a consolidation of the share price and result in a breakout or breakdown of the share price when the band drastically narrows. Hence, it might take a month or so to reach that point until I can further advise on the next course of action to take.
If you want to trade this pattern, I recommend buying close to the trend support with MACD crossing confirmation (and likewise shorting) and selling before it reaches trend resistance. However, profits are likely to be limited at the current moment so trade with care.
The real money to be made is when it breaks out or breaks down when the consolidation narrows the range of share prices. Hence for now, just let it bounce downwards. Unless, of course, the share price decides to clearly break the trend resistance to make a new trend.
Cheers & Good Luck