Buy Alert: IQIYI Chart Analysis

Shares of IQIYI Inc (IQ) are under pressure today after it was revealed that Credit Suisse (CS) sold another 35 million shares at $15.85. These shares were a result of the Archegos collapse as the bank continues to take heavy losses from the blowup. Having said that, investors should look to accumulate IQIYI based on a trend channel that stretches back to 2018.

IQIYI has traded between $15.00/share and $28.00/share throughout this three-year period. This channel signals that the stock is likely at the lower range and has upside back to $28.00/share. The risk/reward setup is golden as the downside risk is $1 per share. In other words, should the stock break below $15.00, exit the trade. The upside potential is $28/share, a move of 75%. That is an amazing reward for little risk.

IQIYI Chart Analysis shown below…

(Click on image to enlarge)

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