IQ finds buyers at key support level
iQIYI Inc. (IQ) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
IQ ended Thursday at 19.51 gaining $0.96 (5.18%), significantly underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (IQ as at Mar 26, 2020):
Thursday's trading range has been $1.08 (5.69%), that's below the last trading month's daily average range of $1.56. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IQ.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After trading down to 18.75 earlier during the day, the stock bounced off the key technical support level at 18.84 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on Tuesday, IQ actually lost -0.86% on the following trading day. Prices are trading close to the key technical resistance level at 20.66 (R1).
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the close-by swing high at 20.17 where further buy stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Its common bearish interpretation has been confirmed for iQIYI. Out of 52 times, IQ closed lower 51.92% of the time on the next trading day after the market condition occurred.