ORLY runs into sellers again around 396.01
O'Reilly Automotive Inc. (ORLY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
ORLY finished the week 0.83% higher at 390.89 after losing $1.71 (-0.44%) today, underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Trading $2.42 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on February 6th, ORLY lost -2.62% on the following trading day. Closing below Thursday's low at 391.84, O'Reilly Automotive confirmed its breakout through the prior session low after trading up to $2.07 below it intraday.
Daily Candlestick Chart (ORLY as at Feb 14, 2020):
Friday's trading range has been $6.24 (1.59%), that's slightly below the last trading month's daily average range of $7.92. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for ORLY.
One bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern.
Prices are trading close to the key technical support level at 385.33 (S1). Prices are trading close to the key technical resistance level at 396.23 (R1). After having been unable to move above 396.23 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 396.01.
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 396.23 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 385.33 where further sell stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for O'Reilly Automotive. Out of 40 times, ORLY closed higher 65.00% 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 0.94%.