IQ closes lower for the 2nd day in a row
iQIYI Inc. (IQ) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IQ ended Wednesday at 23.68 losing $0.19 (-0.8%), underperforming the S&P 500 (0.19%). Trading $0.16 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on December 31, 2019, IQ actually gained 8.81% on the following trading day. 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 Jan 15, 2020):
Wednesday's trading range has been $0.47 (1.97%), that's below the last trading month's daily average range of $0.65. 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.
After moving higher in the previous session, iQIYI closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 23.42 (S1). After having been unable to move lower than 23.55 in the previous session, the stock found buyers again around the same price level today at 23.50.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 23.47 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for iQIYI. Out of 50 times, IQ closed lower 52.00% 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 66.00% with an average market move of -1.17%.