IQV dominated by bears dragging the market lower throughout the day
IQVIA Holdings Inc. (IQV) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
IQV finished Wednesday at 162.01 losing $2.70 (-1.64%), significantly underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 162.73, the stock confirmed its breakout through the prior session low after trading up to $0.73 below it intraday.
Daily Candlestick Chart (IQV as at Sep 16, 2020):
Wednesday's trading range has been $3.91 (2.36%), that's slightly above the last trading month's daily average range of $3.82. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IQV.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on July 13th, IQV actually gained 4.60% on the following trading day. In spite of a strong opening IQVIA Holdings closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 163.55 (now R1), which is likely to act as resistance going forward. After having been unable to move above 165.75 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 165.91.
Although 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.
Selling might accelerate should prices move below the nearby swing low at 158.14 where further sell stops could get triggered. As prices are trading close to September's low at 157.18, downside momentum might speed up should IQV mark new lows for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for IQVIA Holdings. Out of 340 times, IQV closed higher 56.47% 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 63.24% with an average market move of 1.13%.