Chart of the Week: Oracle
It’s time for our chart of the week, and it’s Oracle this week. ORCL is the symbol.
We see the stock has made a really nice move here above resistance. And we always like a move above resistance on really good volume. More recently we’ve had some pretty decent turnover from the latter part of August to the early part of September. We are making higher highs and higher lows on the MACD indicator, along with the relative strength index. We are not quite overbought here yet.
We also see a strong move up here into the positive territory on Chaikin Money Flow. No coincidence here that this has occurred while volume is starting to expand. What does this tell us? That tells us that the big money investors – the hedge funds, pension funds, banks, and so forth – are piling into this stock as we speak.
The stock could go higher after earnings
We do have earnings coming out in a couple of weeks. Some of its competitors, like Salesforce, Microsoft, and SAP, have come out with really strong numbers. I expect Oracle will do the same. They did come out with really good numbers back in June. You can see the big spike move up, back down, and right back up again and it hit some resistance at that 126 level.
I think the stock can make a move at least up to there, and perhaps after earnings to the 130 level. I did buy some calls on this today, and actually I added some last week. I do like this Oracle move.
If it can confirm above this 122 level, which it passed through on Tuesday, which would mean another up day on the stock, we think it’s going up higher.
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