O still stuck within tight trading range
Realty Income Corporation (O) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
O ended the month 7.58% higher at 59.50 after losing $0.28 (-0.47%) today, strongly underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (O as at Jun 30, 2020):
Tuesday's trading range has been $1.35 (2.24%), that's far below the last trading month's daily average range of $2.27. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for O. Prices continued to consolidate within a tight trading range between 57.50 and 60.70 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on June 26th, O actually gained 2.35% on the following trading day.
Prices are trading close to the key technical resistance level at 60.13 (R1).
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the close-by swing low at 57.69 where further sell stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Realty Income. Out of 64 times, O closed higher 54.69% 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 64.06% with an average market move of 1.37%.