ORLY closes within prior day's range
O'Reilly Automotive (ORLY) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
ORLY ended the week -0.38% lower at 339.54 after surging $9.19 (2.78%) today, slightly outperforming the Nasdaq 100 (2.77%). This is the biggest single-day gain in over five months. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ORLY as at Oct 12, 2018):
Friday's trading range has been $8.04 (2.41%), that's above the last trading month's daily average range of $5.99. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ORLY.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to break above the 50-day moving average at 335.35 today. When this moving average was crossed above the last time on April 26th, ORLY gained 2.29% on the following trading day. Prices are trading close to the key technical resistance level at 344.32 (R1). After having been unable to move above 340.25 in the prior session, O'Reilly Automotive ran into sellers again around the same price level today, missing to move higher than 340.62.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 342.16.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 351.65, upside momentum could accelerate should the stock be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for O'Reilly Automotive. Out of 72 times, ORLY closed higher 56.94% 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 62.50% with an average market move of 0.85%.