ORCL breaks back above 20-day moving average
Oracle Corporation (ORCL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ORCL finished Thursday at 50.48 gaining $4.54 (9.88%), significantly outperforming the S&P 500 (6.24%). Today's close at 50.48 marks the highest recorded closing price since March 4th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 48.74, the share confirmed its breakout through the previous session high after trading up to $2.00 above it intraday.
Daily Candlestick Chart (ORCL as at Mar 26, 2020):
Thursday's trading range has been $4.55 (9.81%), that's above the last trading month's daily average range of $3.32. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ORCL.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 20-day moving average at 46.91. When this moving average was crossed above the last time on Tuesday, ORCL actually lost -3.97% on the following trading day. Prices are trading close to the key technical resistance level at 52.28 (R1).
Though Oracle is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's high at 55.89, upside momentum might accelerate should the stock be able to break out to new highs for the year. As prices are trading close to March's high at 51.84, upside momentum could speed up should ORCL mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Oracle. Out of 244 times, ORCL closed higher 55.74% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.51% with an average market move of 0.16%.