Computer technology corporation and software giant Oracle (ORCL) has seen its shares decline since making an island top reversal pattern in December. Let's check and see where the charts stand now.
In this daily bar chart of ORCL, below, we can see that prices trade below the negatively sloped 50-day moving average line and the bearish 200-day line. The trading volume has seen increases in December, March and June - as each period of time marked the start of price weakness.
The daily On-Balance-Volume (OBV) line has been in a decline from September as traders have been more aggressive sellers. The Moving Average Convergence Divergence (MACD) oscillator shows improvement from late May but remains below the zero line.
In this weekly Japanese candlestick chart of ORCL, below, we struggle to find bullish clues. Prices are in a downtrend as they trade below the negatively sloped 40-week moving average line. There are a couple of lower shadows in June but these are not convincing enough.
The weekly OBV line is in a slow move lower. The MACD oscillator is in a bearish alignment below the zero line but we could see a cover shorts buy signal in the weeks ahead.
In this daily Point and Figure chart of ORCL, below, we can see a potential downside price target in the $53 area.
In this weekly Point and Figure chart of ORCL, below, we can see a downside target in the $50 area.
Bottom line strategy: The risk is for shares of ORCL to trade lower in the weeks ahead. Avoid the long side.
