ORCL closes above its opening price after recovering from early selling pressure
Oracle Corporation (ORCL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ORCL finished the week -0.57% lower at 52.62 after gaining $0.40 (0.77%) today, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.26 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ORCL as at May 22, 2020):
Friday's trading range has been $0.56 (1.07%), that's below the last trading month's daily average range of $0.96. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ORCL.
After moving lower in the prior session, Oracle managed to close higher but below the previous day's open, forming a bullish Harami Candle.
After having been unable to move lower than 52.12 in the prior session, the share found buyers again around the same price level today at 52.08. The last time this happened on April 28th, ORCL gained 1.28% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 53.27 where further buy stops might get activated. Further buying could move prices higher should the market test April's close-by high at 54.72.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Oracle. Out of 549 times, ORCL closed higher 51.55% 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 57.19% with an average market move of 0.34%.