ORCL bounces off lows recouping most intraday losses
Oracle Corporation (ORCL) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
ORCL finished the month 0.33% higher at 55.45 after gaining $0.20 (0.36%) today on low volume, slightly underperforming the S&P 500 (0.77%). Trading up to $0.85 lower after the open, Oracle 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.
Daily Candlestick Chart (ORCL as at Jul 31, 2020):
Friday's trading range has been $1.14 (2.07%), that's far above the last trading month's daily average range of $0.82. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ORCL.
Although trading as low as 54.33 during the day, the share has decisively rejected those price levels and formed a bullish Pin Bar closing $1.12 above today's low. The last time this happened on December 2, 2016, ORCL gained 1.22% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Takuri Line.
After trading as low as 54.33 during the day, the stock found support at the 50-day moving average at 54.71. After having been unable to move above 55.48 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 55.47.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 55.90 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Pin Bar" stand out. Its common bullish interpretation has been confirmed for Oracle. Out of 2 times, ORCL closed higher 100.00% 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 100.00% with an average market move of 3.36%.