My Watchlist [88]: ORCL... Headed to 144.31? (BUY)
Hi everyone! Charting a new stock today:
Oracle Corporation (NYSE: ORCL)
ORCL’s weekly chart shows it in a traditional uptrend pattern with a series of higher highs and higher lows. It made a new ATH in the week of 18th March on lower volume than the bullish engulfing candle the week before, suggesting profit-taking was taking place rather than a significant topping cycle.
The daily chart better reflects how ORCL is trading in a short-term ascending channel with higher highs and higher lows. We are likely going to see a retest of prior resistance at 120.09 before a move higher, in what should be an S/R flip there before a move higher.
Taking a swing low of 39.71 (COVID-19) and a swing high of 104.36 (prior ATHs before bear market), I note that we have the 1.618 Fib extension situated at 144.31, which gives me the longer-term price target for this name. Another bullish occurrence I noted previously was that ORCL made a new ATH at 127.54 then came back to retest its prior ATHs at 104.36 before heading high. In other words, it is making a series of healthy S/R flips before heading higher.
Alternative Scenario: Bear Case (Less likely)
A break below this ascending channel and the 120.09 level would almost certainly see a retest of the 117.55 level, which was resistance that we gapped up above and have not retested. However, I lean to the bullish side on ORCL unless the channel breaks next week.
Sentiment: BUY (New)
Summary (with Price Targets - NFA):
Ascending channel pattern with a retest of 120.09 for an S/R flip before a move higher towards the longer-term price target at 144.31
Investors can start accumulating at current levels or on an undercut of 120.09 (which happens regularly to take out stops)
The bear case is a breakdown of the ascending channel towards the next support level at 117.55, which was another strong prior resistance
All right, that’s all for this newsletter. Till next time!
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