Oracle Is Oversold Despite Barely Dropping
Oracle gapped to record highs almost two months ago, and now it could interest some trend followers.
The first pattern on today’s chart is the $114.34 level. It was both the opening price and low on June 12, the same day earnings and revenue beat estimates. The software company held that zone in late June, mid-July and again last week. Interestingly, it’s exactly $8 above the previous record high from late 2021. Has new support been confirmed above the old peak?
Second, the series of lower highs has produced a descending triangle. This may create the potential for a breakout.
Bollinger Band Width also shows volatility tightening. That narrower price action may result in price expansion if a breakout occurs.
Fourth, the 50-day simple moving average (SMA) has caught up with the stock during this period of sideways movement. Intermediate-term trend followers may view that as a potential entry point.
Finally, the stochastics oscillator has moved into oversold territory despite ORCL barely falling.
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The first pattern on today’s chart is the $114.34 level. It was both the opening price and low on June 12, the same day earnings and revenue beat estimates. The software company held that zone in late June, mid-July and again last week. Interestingly, it’s exactly $8 above the previous record high from late 2021. Has new support been confirmed above the old peak?
Second, the series of lower highs has produced a descending triangle. This may create the potential for a breakout.
Bollinger Band Width also shows volatility tightening. That narrower price action may result in price expansion if a breakout occurs.
Fourth, the 50-day simple moving average (SMA) has caught up with the stock during this period of sideways movement. Intermediate-term trend followers may view that as a potential entry point.
Finally, the stochastics oscillator has moved into oversold territory despite ORCL barely falling.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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