IQ closes within previous day's range
iQIYI Inc. (IQ) Technical Analysis Report for Jan 27, 2020 | by Techniquant Editorial Team
IQ finished Monday at 21.99 gaining $0.10 (0.46%), notably outperforming the S&P 500 (-1.57%). 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 27, 2020):
Monday's trading range has been $1.84 (8.84%), that's far above the last trading month's daily average range of $0.86. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IQ.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the In-Neck Pattern. The last time a White Candle showed up on January 21st, IQ gained 1.05% on the following trading day.
Prices are trading close to the key technical support level at 21.39 (S1).
While the market 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 four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "In-Neck Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for iQIYI. Out of 2 times, IQ closed higher 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 100.00% with an average market move of 7.36%.