Earnings play: Oracle

Oracle's stock price appears to be consolidating within a symmetrical triangle pattern.

Crypto 10

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

Build your confidence risk free

More from Earnings

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.