IAG unable to break through key resistance level
Iamgold Corporation (IAG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
IAG finished the month 26.08% higher at 4.98 after gaining $0.14 (2.89%) today, strongly outperforming the S&P 500 (0.77%). Closing above Thursday's high at 4.97, the stock confirmed its breakout through the prior session high after trading up to $0.08 above it intraday.
Daily Candlestick Chart (IAG as at Jul 31, 2020):
Friday's trading range has been $0.17 (3.48%), that's below the last trading month's daily average range of $0.22. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for IAG.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 4.99 (R1), Iamgold closed below it after spiking up to 5.05 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on July 13th, IAG actually gained 4.44% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three 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 423 times, IAG closed lower 52.72% 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 53.19% with an average market move of -0.01%.