Oracle Corporation (ORCL) Ripe for a Bullish Rebound
Oracle Corporation (ORCL) stock is not trading within any strong uptrend. But the technicals on the iconic software company suggest significant potential upside for its stock.
Earnings season is rolling around once again, and the company reports next Monday on December 17, after the market close. Oracle beat earnings estimates in its last release on September 17. Though the stock gapped down the next morning, the gap was immediately closed to the upside and ORCL went on to rise sharply in the subsequent week.
Technical analysis of ORCL stock suggests that the stock is likely poised for a rebound after having been in a general decline for the past several weeks. The longer-term trend as shown by the 200-day linear regression is bullish, though the shorter-term 100-day is flat. Momentum indicators like the Stochastics are beginning to turn up from oversold. And the stock is sitting right around key range support in the $46 price area.
Of course, much will depend on the company’s upcoming earnings release. But the last two releases earlier this year subsequently resulted in significantly higher prices for the stock.
The Technicals Rating
The Technicals gives ORCL a bullish rating of 6 (on a scale of 1-10, with ’10’ being the most bullish and ‘1’ being the most bearish). Below are some of the key technicals for ORCL, as well as other relevant information, that help paint a slightly bullish picture of the stock:
- Price Position vs 200-Day SMA: -3.04% (below) – BEARISH
- Position vs 50-Day SMA: -4.50% (below) – BEARISH
- Position vs 20-Day SMA: -4.57% (below) – BEARISH
- 200-Day Trend Slope (Linear Regression): BULLISH
- 100-Day Trend Slope (Linear Regression): NEUTRAL
- Stochastics (14,3,3) Level: Oversold – BULLISH
- RSI (14) Level: Lower Middle – NEUTRAL
- Position in Bollinger Bands: Near Lower Band – BULLISH
- Sector (ETF: IGV) Long-Term 200-Day Trend: BULLISH
- Sector (ETF: IGV) Medium-Term 100-Day Trend: BEARISH
- Market (S&P 500) Long-Term 200-Day Trend: BULLISH
- Market (S&P 500) Medium-Term 100-Day Trend: BEARISH
- Short Interest Ratio: 1.64% – BULLISH
- Analysts’ Mean Target Price: $52.93 (well above current price) – BULLISH
- Last Earnings Reaction: Gap Down then Sharp Move Up – BULLISH
Overall The Technicals Rating for ORCL: TTTTTTTTTT (6 out of 10) – SLIGHTLY BULLISH
IMPORTANT: The information above should not be construed as investment advice and should not be considered as a solicitation to buy or sell securities. Trading and investing in the financial markets involves substantial risk of loss, and may not be suitable for all investors.
Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.
Chief Market Strategist at The Technicals
With more than two decades of experience as an equity analyst for several major research firms, Don has covered individual stocks (both technically and fundamentally) across a wide variety of sectors and industries, including tech, financial, and retail. He has been quoted regularly in key financial media like Bloomberg and Reuters. Contact Don