IAG pushes through key technical resistance level
Iamgold Corporation (IAG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, IAG finished the month 5.61% higher at 3.95 after surging $0.29 (7.92%) today on high volume, significantly outperforming the S&P 500 (1.54%). This is the biggest single-day gain in over two months. Today's close at 3.95 marks the highest recorded closing price since September 24, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 3.66, the stock confirmed its breakout through the previous session high after trading up to $0.31 above it intraday.
Daily Candlestick Chart (IAG as at Jun 30, 2020):
Tuesday's trading range has been $0.35 (9.59%), that's far above the last trading month's daily average range of $0.18. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IAG.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 3.77 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since May 20th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 3.53 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on May 20th, IAG actually lost -3.60% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 4.17 is within reach and we might see further upside momentum should the market manage to break out beyond.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Iamgold. Out of 112 times, IAG closed lower 55.36% 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 58.04% with an average market move of -2.42%.