O closes lower for the 2nd day in a row
Realty Income Corporation (O) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, O ended the month 0.92% higher at 60.05 after losing $0.50 (-0.83%) today, significantly underperforming the S&P 500 (0.77%). 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 Jul 31, 2020):
Friday's trading range has been $1.24 (2.06%), that's below the last trading month's daily average range of $1.53. 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 slightly lower than usual for O. Prices continued to consolidate within a tight trading range between 58.97 and 60.73 where it has been caught now for the last three trading days.
After moving higher in the previous session, the stock closed lower but above the prior day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on September 9, 2019, O lost -2.06% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man.
After trading as low as 58.97 during the day, the share found support at the 50-day moving average at 59.06. Prices are trading close to the key technical resistance level at 60.46 (R1). After having been unable to move lower than 59.10 in the previous session, Realty Income found buyers again around the same price level today at 58.97.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 60.73 where further buy stops could get activated. As prices are trading close to July's high at 62.56, upside momentum might accelerate should the market mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Realty Income. Out of 57 times, O closed higher 63.16% of the time on the next trading day after the market condition occurred.