IQ closes higher for the 3rd day in a row
iQIYI Inc. (IQ) Technical Analysis Report for Jan 29, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, IQ ended Wednesday at 22.53 gaining $0.02 (0.09%) on low volume, slightly outperforming the S&P 500 (-0.09%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IQ as at Jan 29, 2020):
Wednesday's trading range has been $0.49 (2.16%), that's below the last trading month's daily average range of $0.88. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IQ.
After having been unable to move above 22.80 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 22.80. The last time this happened on January 24th, IQ actually gained 0.46% on the following trading day.
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 two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for iQIYI. Out of 29 times, IQ closed lower 58.62% of the time on the next trading day after the market condition occurred.