IQ dominated by bears dragging the market lower throughout the day
iQIYI Inc. (IQ) Technical Analysis Report for Jul 15, 2019 | by Techniquant Editorial Team
IQ finished Monday at 19.49 losing $0.16 (-0.81%), underperforming the S&P 500 (0.02%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 19.58, the share confirmed its breakout through the prior session low after trading up to $0.12 below it intraday.
Daily Candlestick Chart (IQ as at Jul 15, 2019):
Monday's trading range has been $0.53 (2.67%), 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.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Last Engulfing Bottom Pattern which are both known as bullish patterns and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on July 3rd, IQ actually lost -2.60% on the following trading day.
The stock found buyers again today around 19.46 for the third trading day in a row after having found demand at 19.58 in the previous session and at 19.52 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for iQIYI. Out of 7 times, IQ closed lower 71.43% 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 100.00% with an average market move of -7.10%.