IQ runs into sellers again around 24.12
iQIYI Inc. (IQ) Technical Analysis Report for Jan 14, 2020 | by Techniquant Editorial Team
IQ finished Tuesday at 23.87 losing $0.11 (-0.46%), slightly underperforming the S&P 500 (-0.15%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IQ as at Jan 14, 2020):
Tuesday's trading range has been $0.57 (2.42%), that's slightly below the last trading month's daily average range of $0.67. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IQ.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on January 8th, IQ gained 2.08% on the following trading day.
Prices are trading close to the key technical support level at 23.42 (S1). After having been unable to move above 24.23 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 24.12.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 23.47 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for iQIYI. Out of 24 times, IQ closed lower 62.50% 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 66.67% with an average market move of -1.92%.