ORCL stuck within tight trading range
Oracle Corporation (ORCL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ORCL ended Wednesday at 60.43 losing $0.51 (-0.84%), slightly underperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ORCL as at Sep 16, 2020):
Wednesday's trading range has been $1.74 (2.85%), that's slightly above the last trading month's daily average range of $1.56. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ORCL. Prices continued to consolidate within a tight trading range between 59.35 and 61.68 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 61.68 (R1). Oracle found buyers again today around 59.65 for the third trading day in a row after having found demand at 59.39 in the previous session and at 59.35 two days ago.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 57.27. The last time this happened on September 3rd, ORCL lost -2.40% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 61.68 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Oracle. Out of 82 times, ORCL closed higher 54.88% of the time on the next trading day after the market condition occurred.