ORLY finds buyers again around 350.36
O'Reilly Automotive Inc. (ORLY) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
ORLY ended the week -3.23% lower at 353.02 after gaining $0.45 (0.13%) today, notably outperforming the Nasdaq 100 (-1.01%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ORLY as at May 17, 2019):
Friday's trading range has been $7.53 (2.14%), that's slightly below the last trading month's daily average range of $7.69. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ORLY. Prices continued to consolidate within a tight trading range between 350.36 and 357.89 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on April 8th, ORLY actually lost -0.52% on the following trading day.
Prices are trading close to the key technical support level at 352.31 (S1). After having been unable to move lower than 351.17 in the previous session, the share found buyers again around the same price level today at 350.36.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could speed up should prices move below the nearby swing low at 349.71 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 "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for O'Reilly Automotive. Out of 746 times, ORLY closed higher 53.75% 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 62.20% with an average market move of 1.21%.