Earnings play: Oracle
Jason Lubin December 11, 2020 1:11 AM
Oracle's stock price appears to be consolidating within a symmetrical triangle pattern.
On Thursday, after market, Oracle (ORCL) is expected to report second quarter EPS of $1.00 compared to $0.90 last year on revenue of approximately $9.8 billion vs. $9.6 billion a year earlier. Oracle is an information technology and software company, and its expected move based on front-month options is 4.9%.
Technically speaking, on a daily chart, Oracle's stock price appears to be consolidating within an intermediate-term symmetrical triangle pattern that began to form in mid-August. Looking to the short-term, one can see that price has just broken out to the downside of a bullish trendline that price has been rising on top of since November 23rd. The RSI is over 50, but pointing downward. The simple moving averages (SMAs) are arranged in a mixed to bullish manner, as the 50-day SMA is above the 20-day SMA and the 20-day SMA is above the 200-day SMA. In the short-term, price will likely fall towards the lower trendline of the symmetrical triangle pattern. If price can reach the lower trendline, price is likely to find support and bounce towards the upper trendline of the triangle. If price can manage to breakout to the upside of the upper trendline then the next targets would be 60.50 and 61.85. There is a support level at 57.50 which traders should be aware of, as price could potentially rebound from there. On the other hand, if price falls below the lower trendline it would be a bearish signal. If price fails to be supported at 55.60, then price could possible tumble further.
Source: GAIN Capital, TradingView
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.