IQ closes within previous day's range after lackluster session
iQIYI Inc. (IQ) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
IQ finished the week -2.77% lower at 19.65 after gaining $0.08 (0.41%) today, slightly underperforming the S&P 500 (0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IQ as at Jul 12, 2019):
Friday's trading range has been $0.42 (2.14%), that's below the last trading month's daily average range of $0.76. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for IQ.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Doji showed up on June 17th, IQ gained 2.44% on the following trading day.
After having been unable to move lower than 19.52 in the prior session, the market found buyers again around the same price level today at 19.58.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 20.36 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 19.52 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for iQIYI. Out of 86 times, IQ closed lower 54.65% 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 67.44% with an average market move of -2.05%.