Oracle (Nasdaq: ORCL) Looks Set To Make A Move
Shares of Oracle (Nasdaq: ORCL) look set to move higher.
Chart Courtesy of StockCharts.com
There are very few old time software companies that look very enticing
these days as biotech and Apple (Nasdaq: AAPL) are the current Nasdaq
money magnets. But Oracle's chart pattern is fairly interesting and
worth noting.
From where we stand, this is a pretty classic cup and handle, the benchmark chart
formation for CANSLIM investing, the trading method popularized by William O'
Neill and Investor's Business Daily. Over the last few years, CANSLIM hasn't
been as prominent, or as proficient as it's been in past periods.
But that's mostly because growth stocks haven't been in vogue. But as the bull
market digs its heels in, and growth investors return, CANSLIM may make a more
noticeable comeback. That's why Oracle's cup and handle is worth keeping an eye
on.
Oracle's been forming this cup and handle since late January, with the handle,
the important part, being formed for about three weeks. A good handle can take
a while to form, and a good cup and handle can take months to form, as it takes
a while for all of the sellers to be shaken out.
What we like is that as this handle is forming, you're starting to see rising
volume on up days and falling volume on down days. That suggests that more buyers
than sellers are involved in forming the pattern.
The break out point looks to be at 25.62. A good close or two above that point
could be the signal that Oracle may be off to the races.
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