When the Price of O'reilly Automotive ORLY Talks, People Listen

May 19, 2022, 04:45 am ET, BY Robert S.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

This is not EF Hutton, but it could be more #powerful.  A picture speaks a thousand words, they say, and the #priceaction of O'reilly Automotive (NASDAQ: ORLY) tells an important story.  The movement tells us where investors perceive value, or the lack of it, and if we pay attention we can capture opportunity.  The data below for ORLY can be used as an example, and demonstrate how to do this for other stocks too.  This data was current at the time of publication, but it is not updated in real time here. If you want real time updates, or data on a different stock, please get one here Unlimited Real Time Reports. 

Longer Term Trading Plans for ORLY

• NONE. Details

There is no current Support Plan to trigger a buy of this stock at this time. This usually means that there are no clear support levels at this time, so buying the stock as it falls could be considered catching a falling knife. Buy signals only exist if resistance breaks higher.
This often is a signal that the stock you are watching is weak. Waiting for a turn higher may be more intelligent than trying to catch a falling knife. In any case, new support levels are usually revised to the database at the beginning of the next trading session.

• Short ORLY under 662.06, target n/a, stop loss @ 663.97 Details

The technical summary data is suggesting a short of ORLY as it gets near 662.06, but the downside target is not available from the current data. This tells us to hold that position if it is triggered until a new downside target has been established (updates occur at the beginning of every trading session) or until the position has been stopped. The summary data tells us to have a stop loss in place at 663.97. 662.06 is the first level of resistance above 599.87, and by rule, any test of resistance is a short signal. In this case, if resistance 662.06 is being tested, so a short signal would exist.

Swing Trading Plans for ORLY

• Buy ORLY slightly over 636.20, target 662.06, Stop Loss @ 634.36 Details

If 636.20 begins to break higher, the technical summary data tells us to buy ORLY just slightly over 636.20, with an upside target of 662.06. The data also tells us to set a stop loss @ 634.36 in case the stock turns against the trade. 636.20 is the first level of resistance above 599.87, and by rule, any break above resistance is a buy signal. In this case, 636.20, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short ORLY near 636.20, target 575.68, Stop Loss @ 638.04. Details

The technical summary data is suggesting a short of ORLY if it tests 636.20 with a downside target of 575.68. We should have a stop loss in place at 638.04 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 636.20, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for ORLY

• Buy ORLY slightly over 616.22, target 636.20, Stop Loss @ 614.78 Details

If 616.22 begins to break higher, the technical summary data tells us to buy ORLY just slightly over 616.22, with an upside target of 636.20. The data also tells us to set a stop loss @ 614.78 in case the stock turns against the trade. 616.22 is the first level of resistance above 599.87, and by rule, any break above resistance is a buy signal. In this case, 616.22, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short ORLY near 616.22, target 575.68, Stop Loss @ 617.66. Details

The technical summary data is suggesting a short of ORLY if it tests 616.22 with a downside target of 575.68. We should have a stop loss in place at 617.66 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 616.22, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

ORLY Ratings for May 19:

Term →	Near	Mid	Long
Rating	Neutral	Weak	Strong
P1	0	0	662.06
P2	616.22	575.68	704.54
P3	650.78	636.20	744.59

Support and Resistance Plot Chart for ORLY

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