Oracle Pulls Back After Breaking Out
Oracle has been one of the quieter names in tech recently, but the chart is showing signs of a potential rally.
The software giant hit new highs in December following a strong quarterly report. Importantly, its newer cloud business surprised to the upside.
ORCL then pulled back and has retraced the entire move. Friday and Monday, it held the same $60 level where it initially broke out on December 11. That price line could be especially important because the previous breakout attempt in September and October failed around the same area. Has old resistance become new support?
The bounce is also occurring at the 50- and 100-day simple moving averages (SMAs).
Stochastics additionally are showing an oversold condition.
Flipping to the weekly chart, we see ORCL’s now trying to form a bullish inside candle. That could be a potential sign of stabilization after five straight downside weeks.
Finally, ORCL trades at much lower multiples (price/earnings, price/sales) than peers like Microsoft (MSFT) and Adobe (ADBE). If its recent Cloud gains continue, investors may be willing to pay higher valuations.
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The software giant hit new highs in December following a strong quarterly report. Importantly, its newer cloud business surprised to the upside.
ORCL then pulled back and has retraced the entire move. Friday and Monday, it held the same $60 level where it initially broke out on December 11. That price line could be especially important because the previous breakout attempt in September and October failed around the same area. Has old resistance become new support?
The bounce is also occurring at the 50- and 100-day simple moving averages (SMAs).
Stochastics additionally are showing an oversold condition.
Flipping to the weekly chart, we see ORCL’s now trying to form a bullish inside candle. That could be a potential sign of stabilization after five straight downside weeks.
Finally, ORCL trades at much lower multiples (price/earnings, price/sales) than peers like Microsoft (MSFT) and Adobe (ADBE). If its recent Cloud gains continue, investors may be willing to pay higher valuations.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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