IQ fails to close above 20-day moving average
iQIYI, Inc. (IQ) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IQ finished the week 2.0% higher at 26.00 after gaining $1.13 (4.54%) today, strongly outperforming the S&P 500 (1.42%). Trading up to $0.49 lower after the open, iQIYI 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 (IQ as at Oct 12, 2018):
Friday's trading range has been $1.22 (4.75%), that's slightly below the last trading month's daily average range of $1.33. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for IQ.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After spiking up to 26.44 during the day, the stock found resistance at the 20-day moving average at 26.39. The last time this happened on October 3rd, IQ lost -5.88% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might speed up should prices move above the close-by swing high at 26.59 where further buy stops could get activated. As prices are trading close to October's high at 27.40, upside momentum might accelerate should the share mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Its common bearish interpretation has been confirmed for iQIYI. Out of 13 times, IQ closed lower 69.23% 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 76.92% with an average market move of -6.11%.