IAG closes above its opening price after recovering from early selling pressure
Iamgold Corporation (IAG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, IAG finished Thursday at 2.56 gaining $0.14 (5.79%), slightly underperforming the S&P 500 (6.24%). Trading up to $0.18 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 Mar 26, 2020):
Thursday's trading range has been $0.24 (9.45%), that's below the last trading month's daily average range of $0.37. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IAG. Prices continued to consolidate within a tight trading range between 2.21 and 2.66 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Hanging Man showed up on October 30, 2019, IAG actually gained 4.47% on the following trading day.
Iamgold managed to close above the 20-day moving average at 2.50 for the first time since March 5th. Prices are trading close to the key technical resistance level at 2.79 (R1).
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 2.66 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Iamgold. Out of 60 times, IAG closed lower 55.00% 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 58.33% with an average market move of -0.46%.