ORLY runs into sellers again around 480.31
O'Reilly Automotive Inc. (ORLY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ORLY finished Wednesday at 469.92 tanking $7.49 (-1.57%), but still slightly outperforming the Nasdaq 100 (-1.67%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 476.40, the share confirmed its breakout through the prior session low after trading up to $7.73 below it intraday.
Daily Candlestick Chart (ORLY as at Sep 16, 2020):
Wednesday's trading range has been $11.64 (2.42%), that's above the last trading month's daily average range of $8.91. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ORLY.
Despite a strong opening O'Reilly Automotive closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
After trading as low as 468.67 during the day, the market found support at the 20-day moving average at 469.35. The last time this happened on September 10th, ORLY gained 1.15% on the following trading day. After having been unable to move above 480.70 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 480.31.
Though ORLY is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the close-by swing low at 467.43 where further sell stops might get activated. With prices trading close to this year's high at 487.95, upside momentum could accelerate should the share be able to break out to new highs for the year.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for O'Reilly Automotive. Out of 74 times, ORLY closed higher 58.11% 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 71.62% with an average market move of 1.68%.