Company Description: O’Reilly Automotive, Inc. operates as a specialty retailer of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. Its stores offer new and remanufactured automotive hard parts, including alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, chassis parts, and engine parts; maintenance items comprising oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives, and appearance products; accessories consisting of floor mats, seat covers, and truck accessories; and a line of auto body paint and related materials, automotive tools, and professional service equipment. The company’s stores sell a selection of brand name and private label products for domestic and imported automobiles, vans, and trucks to do-it-yourself customers and professional installers. As of December 31, 2009, it operated 3,421 stores. The company was founded in 1957 and is headquartered in Springfield, Missouri.

Our Analysis: The shares of O'Reilly Automotive, Inc. 'ORLY' moved sharply lower yesterday on heavy trading volume particularly when considering it was the last trading day before Christmas. They finished the day by closing below a recently established support level. This is a bearish trading signal. The shares of 'ORLY' should continue to move lower and test $58.38/share, a point of support established on November 16th of this year. If the shares of 'ORLY' close below that level, then they should continue to move lower and test $54.40/share, the point from which they gapped higher on the open of trading on October 28th of this year. I see upside resistance on the shares of 'ORLY' @ $60.54/share, and have set my stops accordingly @ $60.91/share.