IAG unable to break through key resistance level
Iamgold Corporation (IAG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, IAG finished the week 2.77% higher at 2.97 after edging lower $0.02 (-0.67%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.06 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on February 3rd, IAG lost -2.08% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (IAG as at Feb 14, 2020):
Friday's trading range has been $0.08 (2.68%), that's far below the last trading month's daily average range of $0.12. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for IAG.
Unable to break through the key technical resistance level at 3.04 (R1), the stock closed below it after spiking up to 3.05 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 2.97 in the prior session, Iamgold found buyers again around the same price level today at 2.97.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Iamgold. Out of 429 times, IAG closed lower 53.38% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.85% with an average market move of -0.20%.