ORLY closes within prior day's range after lackluster session
O'Reilly Automotive Inc. (ORLY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ORLY ended the week -0.52% lower at 404.99 after edging higher $0.71 (0.18%) today on low volume, slightly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading up to $4.83 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 14th, ORLY gained 2.14% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ORLY as at May 22, 2020):
Friday's trading range has been $6.90 (1.71%), that's far below the last trading month's daily average range of $12.05. 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 ORLY.
After having been unable to move lower than 400.02 in the prior session, the stock found buyers again around the same price level today at 398.50.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for O'Reilly Automotive. Out of 602 times, ORLY closed higher 54.49% 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 57.14% with an average market move of 0.87%.