IAG closes within previous day's range after lackluster session
Iamgold Corporation (IAG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
IAG ended Wednesday at 4.26 edging higher $0.01 (0.24%) on low volume, outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IAG as at Sep 16, 2020):
Wednesday's trading range has been $0.11 (2.55%), that's far below the last trading month's daily average range of $0.20. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for IAG.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
After having been unable to move lower than 4.22 in the previous session, the share found buyers again around the same price level today at 4.21. The last time this happened on September 10th, IAG actually lost -1.22% on the following trading day.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the nearby swing high at 4.43 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Its common bearish interpretation has been confirmed for Iamgold. Out of 628 times, IAG closed lower 49.20% 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 53.34% with an average market move of -0.23%.