O finds buyers again around 60.22
Realty Income Corporation (O) Technical Analysis Report for Nov 20, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, O finished the week -4.22% lower at 60.39 after losing $0.72 (-1.18%) today, slightly underperforming the S&P 500 (-0.68%). 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 (O as at Nov 20, 2020):
Friday's trading range has been $1.02 (1.67%), that's below the last trading month's daily average range of $1.67. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for O.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 59.80 (S1). The market closed back below the 200-day moving average at 60.47 for the first time since November 6th. After having been unable to move lower than 60.08 in the previous session, the stock found buyers again around the same price level today at 60.22. The last time this happened on November 10th, O actually lost -1.90% on the following trading day.
Though Realty Income is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could accelerate should prices move below the close-by swing low at 60.08 where further sell stops might get activated. As prices are trading close to November's low at 57.69, downside momentum could speed up should the share mark new lows for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Realty Income. Out of 70 times, O closed higher 57.14% of the time on the next trading day after the market condition occurred.