IQ closes higher for the 2nd day in a row
iQIYI Inc. (IQ) Technical Analysis Report for Jan 17, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IQ ended the week 0.04% higher at 23.91 after gaining $0.13 (0.55%) today, slightly outperforming the S&P 500 (0.39%) ahead of tomorrow's Martin Luther King Jr. Day market holiday. 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 17, 2020):
Friday's trading range has been $0.33 (1.38%), that's below the last trading month's daily average range of $0.65. Weekly volatility is also lower, being way 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 24.23 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
The market ran into sellers again today around 24.07 for the third trading day in a row after having found sellers at 23.97 in the previous session and at 23.97 two days ago. The last time this happened on September 27, 2019, IQ lost -2.89% 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 close-by swing low at 23.49 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Its common bearish interpretation has been confirmed for iQIYI. Out of 28 times, IQ closed lower 64.29% 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 67.86% with an average market move of -1.25%.