Hands on the Steering Wheel

What do I like about O'Reilly Automotive (ORLY)? Let's start with the fact that we are looking at a general bigger-picture pattern of higher highs and lows, as the current price action is above both the 200-day and 50-day simple moving averages. Beyond that, this chart is showing what I consider to be a classic bullish two-step pattern.

The two-step is one of the three trading setups I seek each day on whatever charts I analyze. It is essentially a zig-zag formation that corrects a prior trend swing, and it has to show me a minimum of three Fibonacci price relationships within a relatively tight range. In the case of O'Reilly's two-step pattern, we are actually looking at the coincidence of at least nine price relationships....335 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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