IQ closes higher for the 2nd day in a row
iQIYI Inc. (IQ) Technical Analysis Report for Jan 28, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IQ ended Tuesday at 22.51 gaining $0.52 (2.36%), significantly outperforming the S&P 500 (1.01%). Trading up to $0.49 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 23rd, IQ actually lost -8.52% 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 28, 2020):
Tuesday's trading range has been $0.89 (3.97%), that's slightly above the last trading month's daily average range of $0.88. 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.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Although iQIYI is currently in a short-term downtrend, this might 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 59 times, IQ closed lower 55.93% 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 55.93% with an average market move of -1.93%.