IAG closes within prior day's range after lackluster session
Iamgold Corporation (IAG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
IAG finished the week -3.09% lower at 3.76 after edging higher $0.01 (0.27%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading $0.08 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IAG as at May 22, 2020):
Friday's trading range has been $0.11 (2.91%), that's far below the last trading month's daily average range of $0.18. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for IAG.
Prices are trading close to the key technical support level at 3.65 (S1). After having been unable to move above 3.85 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 3.86. The last time this happened on May 7th, IAG actually gained 3.33% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 3.95 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 3.68 where further sell stops could get triggered. 2019's high at 4.17 is within reach and we might see further upside momentum should the share manage to break out beyond.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Its common bearish interpretation has been confirmed for Iamgold. Out of 567 times, IAG closed lower 49.38% 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 51.50% with an average market move of 0.14%.