IQ unable to break through key resistance level
iQIYI Inc. (IQ) Technical Analysis Report for Jan 22, 2020 | by Techniquant Editorial Team
IQ ended Wednesday at 24.16 gaining $0.25 (1.05%) on high volume, notably outperforming the S&P 500 (0.03%). Trading $0.85 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (IQ as at Jan 22, 2020):
Wednesday's trading range has been $1.02 (4.2%), that's above the last trading month's daily average range of $0.68. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IQ.
One bearish candlestick pattern matches today's price action, the Shooting Star.
Unable to break through the key technical resistance level at 24.89 (R1), the market closed below it after spiking up to 25.14 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on January 7th, IQ actually gained 2.83% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" 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 six trading days, showing a win rate of 58.33% with an average market move of -0.37%.