Saturday, January 29, 2011

The Market Oracle Prediction for Oracle

 In this post, I will attempt to predict the future direction for Oracle stock for the near future. on Jan 28, 2011, yesterday, Oracle tumble 2.8% down to close at $32 with a bearish engulfing pattern for candlestick indicator. Many people would like to know is the beginning of the downtrend for Oracle Corp or should the short seller should begin their move to short sell this share.

Well, after looking at the long term chart - 3 Years and also the yearly and quarterly earning, I came to a conclusion that the recent fall in the stock price is purely a consolidation and it does not signal a reversal yet.
Click on the above image to enlarged

Looking at the above chart, Oracle is currently in the upward trading range. Although it have false break down move on the May 2011, it convincingly rebound and continue to trade within the range to the current level.

Studying this chart pattern, I will assume that the upward trend will continue until it hit a climax above the range with a superb high volume and high percentage increase in a single day. When this happen, you should then keep track for the reversal signal by looking at the other technical indicators. However, I don't see the climax for this stock happening anytime soon.

Both the yearly and quarterly earning growth are also a good reason this stock is a good stock that warrant a buy. The yearly profit increase for this stock is more than 10% for the last 4 years and I will predict that this type of earning growth will continue for Oracle Corp.

For those who waiting on the sideline to short this stock, it is surely a dangerous bet that should be consider wisely as I do not expect this stock to reverse its upward trend anytime soon.

Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in The Market Oracle Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don't consider buying or selling any stock without conducting your own due diligence. 


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