O runs into sellers again around 58.63
Realty Income Corporation (O) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, O finished Thursday at 58.36 gaining $3.86 (7.08%), outperforming the S&P 500 (6.24%). Trading up to $2.35 lower after the open, Realty Income managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 19th, O actually lost -1.37% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (O as at Mar 26, 2020):
Thursday's trading range has been $4.40 (7.78%), that's slightly below the last trading month's daily average range of $5.53. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for O.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 59.50 (R1). After having been unable to move above 59.50 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 58.63.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 59.50 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Realty Income. Out of 598 times, O closed higher 55.52% 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 58.70% with an average market move of 0.51%.