In the daily bar chart of ORLY, below, we can see that the shares have rallied from late May and have filled most of the price gap from late April. ORLY is pausing/correcting slightly ahead of Wednesday’s data points and that is only natural for traders to reduce their positions after a strong advance. The slopes of the 50-day and 200-day moving averages are positive.
In the weekly Japanese candlestick chart of ORLY, below, we can see a number of positive clues. Prices are in an uptrend and trade above the rising 40-week moving average line.
The weekly OBV line shows a long-term advance and is only slightly below its best level. The MACD oscillator is crossing above the zero line for an outright buy signal.
In this daily Point and Figure chart of ORLY, below, we can see a potential price target in the $772 area.
In this weekly Point and Figure chart of ORLY, below, the software projects possible gains to the $912 area.
Bottom-line strategy: I have no special knowledge of what ORLY will report Wednesday evening but the price of ORLY has advanced sharply ahead of earnings so a significant beat is probably needed to sustain gains from here. More likely a sideways to lower correction is due to unfold in the days and weeks ahead. A correction may prove to be a buying opportunity. Stay tuned.
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