O surges, gaining $1.46 (1.85%) within a single day
Realty Income Corporation (O) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, O ended the week 0.93% higher at 80.25 after surging $1.46 (1.85%) today, strongly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day gain in over five months. Today's close at 80.25 marks the highest recorded closing price since November 1, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 79.28, the stock confirmed its breakout through the previous session high after trading up to $0.97 above it intraday.
Daily Candlestick Chart (O as at Feb 14, 2020):
Friday's trading range has been $1.44 (1.83%), that's far above the last trading month's daily average range of $1.07. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for O.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns. The last time a Bullish Closing Marubozu showed up on November 27, 2019, O actually lost -1.36% on the following trading day.
Buyers managed to take out the key technical resistance level at 79.15 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 80.35 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 80.35 where further buy stops might get triggered. 2019's high at 82.17 is within reach and we could see further upside momentum should the share manage to break out beyond.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Realty Income. Out of 278 times, O closed higher 57.55% 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 60.07% with an average market move of 0.49%.