Oracle Is Oversold Despite Barely DroppingOracle 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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