IQ closes above its opening price after recovering from early selling pressure
iQIYI Inc. (IQ) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
IQ ended Thursday at 23.93 losing $0.23 (-0.95%), notably underperforming the S&P 500 (0.11%). Trading up to $0.20 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 9th, IQ actually lost -2.53% on the following trading day. 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 23, 2020):
Thursday's trading range has been $0.47 (1.97%), that's below the last trading month's daily average range of $0.69. Things look different on the weekly timeframe, where the market's trading range of the last week has been above 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 Bullish Spinning Top.
Prices are trading close to the key technical support level at 23.42 (S1).
While iQIYI is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for iQIYI. Out of 58 times, IQ closed lower 55.17% 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 55.17% with an average market move of -1.77%.