IQ runs into sellers around 23.99 for the forth day in a row
iQIYI Inc. (IQ) Technical Analysis Report for Jan 21, 2020 | by Techniquant Editorial Team
IQ ended Tuesday at 23.91 flat, slightly outperforming the S&P 500 (-0.27%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IQ as at Jan 21, 2020):
Tuesday's trading range has been $1.12 (4.83%), that's far above the last trading month's daily average range of $0.65. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IQ.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 23.42 (S1). iQIYI was sold again around 23.99 after having seen highs at 24.07, 23.97 and 23.97 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on May 28, 2019, IQ lost -0.89% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 24.07 where further buy stops might get activated. With prices trading close to this year's high at 24.89, upside momentum could speed up should the stock be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous three Highs" stand out. Its common bearish interpretation has been confirmed for iQIYI. Out of 8 times, IQ closed lower 87.50% 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 75.00% with an average market move of -4.63%.