ORCL Possible buy setup
Updated
Oracle, a Texas based software and cloud giant is making a good possible buy opportunity. What to watch?
1. Weekly chart is showing some healthy pullback to it's previous highs sitting at around $103.73-106.56 price level.
2. When you take the Fibonacci tool and place it on the bottom of the chart which crossed the 200EMA, colored black, and take it to the top, the price had a perfect bounce out of the 38.2% Fib level. This contraction is considered good, especially because there is the 50EMA sitting just there.
3. Since I missed that potential entry point, I am looking on how and when to enter now. The thing I am considering right now is lack of buying pressure and rise in volume for the stock.
4. If we glance at the Daily levels, the stock is trying to close above the 200EMA, and it has been trying to do so for the last month to be precise. I am waiting for a strong upward move and I want to see the price going further away from the 200EMA line, sitting at around $106.5 price level.
5. Once this move happens, I am in. My stop loss will be place below the gap down candles on the Daily level, which are sitting at around $99.5 price level.
6. Depending on the price action of the stock, my take profit levels will either be the previous high of $127.4 or even higher price. If I take the first take profit level, it will bring me solid RR of 1:2.23.
Of course, I will be closely monitoring the reactions of the stock and keep you all updated.
1. Weekly chart is showing some healthy pullback to it's previous highs sitting at around $103.73-106.56 price level.
2. When you take the Fibonacci tool and place it on the bottom of the chart which crossed the 200EMA, colored black, and take it to the top, the price had a perfect bounce out of the 38.2% Fib level. This contraction is considered good, especially because there is the 50EMA sitting just there.
3. Since I missed that potential entry point, I am looking on how and when to enter now. The thing I am considering right now is lack of buying pressure and rise in volume for the stock.
4. If we glance at the Daily levels, the stock is trying to close above the 200EMA, and it has been trying to do so for the last month to be precise. I am waiting for a strong upward move and I want to see the price going further away from the 200EMA line, sitting at around $106.5 price level.
5. Once this move happens, I am in. My stop loss will be place below the gap down candles on the Daily level, which are sitting at around $99.5 price level.
6. Depending on the price action of the stock, my take profit levels will either be the previous high of $127.4 or even higher price. If I take the first take profit level, it will bring me solid RR of 1:2.23.
Of course, I will be closely monitoring the reactions of the stock and keep you all updated.
Note
If anyone took this position, it would be nice to move your Stop Loss a bit higher now, since the price rallied nicely. My price level for stop loss is sitting at $106.58 price level, which is around the previous Higher High level.
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