IQ closes lower for the 2nd day in a row
iQIYI Inc. (IQ) Technical Analysis Report for Jul 05, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IQ ended the week -2.13% lower at 20.21 after losing $0.54 (-2.6%) today, notably underperforming the S&P 500 (-0.18%). Closing below Wednesday's low at 20.27, iQIYI confirmed its breakout through the prior session low after trading up to $0.39 below it intraday.
Daily Candlestick Chart (IQ as at Jul 05, 2019):
Friday's trading range has been $0.65 (3.17%), that's slightly below the last trading month's daily average range of $0.72. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for IQ.
Prices broke below the key technical support level at 20.46 (now R1), which is likely to act as resistance going forward. The last time this happened on June 5th, IQ actually gained 1.42% on the following trading day.
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Its common bearish interpretation has been confirmed for iQIYI. Out of 42 times, IQ closed lower 52.38% 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 three trading days, showing a win rate of 57.14% with an average market move of -0.30%.