IQ finds buyers around 23.49 for the third day in a row
iQIYI Inc. (IQ) Technical Analysis Report for Jan 16, 2020 | by Techniquant Editorial Team
IQ ended Thursday at 23.78 gaining $0.10 (0.42%), slightly underperforming the S&P 500 (0.84%). Trading $0.17 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (IQ as at Jan 16, 2020):
Thursday's trading range has been $0.47 (1.98%), that's below the last trading month's daily average range of $0.65. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IQ. Prices continued to consolidate within a tight trading range between 23.49 and 24.12 where it has been caught now for the last three trading days.
One neutral candlestick pattern matches today's price action, the Doji.
Prices are trading close to the key technical support level at 23.42 (S1). iQIYI found buyers again today around 23.49 for the third trading day in a row after having found demand at 23.50 in the prior session and at 23.55 two days ago. The last time this happened on December 18, 2019, IQ gained 4.12% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 23.47 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for iQIYI. Out of 11 times, IQ closed lower 63.64% 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 81.82% with an average market move of -3.31%.