Candlesticks - Bearish Engulfing O'Reilly

Published on Thursday, 06 December 2012 04:18 Written by TradersHuddle Wire

New York, December 6th (TradersHuddle.com) - Shares of O'Reilly Automotive, Inc. (NASDAQ:ORLY) ended the trading session lower by $1.98 or -2.13% from its previous close. O'Reilly's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

O'Reilly Automotive, Inc. (NASDAQ:ORLY) retails and supplies automotive aftermarket parts, tools, supplies, equipment, and accessories. The Company sells its products to do-it-yourself customers and professional mechanics or service technicians throughout the United States.

O'Reilly's current stock range is determined by calculated support defined at $78.58 and by the resistance level at $93.21, which should be used by traders planning their next move.

If traders want to establish a position in O'Reilly, they need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal in the current price action. The Bearish engulfing pattern is a leading warning sign; therefore, traders should closely monitor O'Reilly for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: