IQ dominated by bears dragging the market lower throughout the day
iQIYI Inc. (IQ) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
IQ finished the week 9.38% higher at 26.93 after losing $0.25 (-0.92%) today on low volume, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IQ as at Feb 14, 2020):
Friday's trading range has been $0.70 (2.55%), that's below the last trading month's daily average range of $1.04. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for IQ.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical resistance level at 27.50 (R1). The market ran into sellers again today around 27.46 for the third trading day in a row after having found sellers at 27.44 in the previous session and at 27.50 two days ago. The last time this happened on February 5th, IQ actually gained 4.29% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 24.17.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 27.50 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 26.02 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Its common bearish interpretation has been confirmed for iQIYI. Out of 32 times, IQ closed lower 59.38% 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 nine trading days, showing a win rate of 65.63% with an average market move of -1.58%.