O closes higher for the 2nd day in a row
Realty Income Corporation (O) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, O finished the week 2.93% higher at 64.29 after gaining $0.36 (0.56%) today on low volume, outperforming the S&P 500 (-0.01%). Today's close at 64.29 marks the highest recorded closing price since December 19, 2018. Trading up to $0.35 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 63.96, the market confirmed its breakout through the previous session high after trading up to $0.35 above it intraday.
Daily Candlestick Chart (O as at Jan 11, 2019):
Friday's trading range has been $0.74 (1.16%), that's below the last trading month's daily average range of $1.51. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for O.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After trading down to 63.57 earlier during the day, the share bounced off the key technical support level at 63.60 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on January 2nd, O gained 0.89% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2018's high at 66.91 is within reach and we could see further upside momentum should Realty Income manage to break out beyond.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Realty Income. Out of 96 times, O closed higher 56.25% 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 65.63% with an average market move of 1.26%.