The Company Oracle (ORCL), which has beaten the earnings per share (EPS) estimates on 16 June. The stock has jumped to $55.00, fell to $51.32, 18 June, and then traded as high as $55.96 on the 23rd of June. Today, the stock is below its quarterly pivot at $55.61. Cloud computing, the company provides software and information technology products on site, custom applications hardware.
Oracle stock closed on Tuesday, June 23, to $55.12, up 4% year to date, and in the bull market territory (38.8% above its March 12 low of $39.71. The stock is also 8.9% below the July 10, 2019, up to $ 60.50, The stock is at a reasonable price with a P/E ratio of 15.54 and a dividend yield of 1.76%.
The daily chart for Oracle
The daily chart for Oracle indicates that the stock has been moving sideways to down since trading as high as $60.50 from the July 10, 2019. The 200-day simple moving average has been a magnet since August. 16, 2019.
Oracle stock gapped below its 50-day and 200-day simple moving average on Feb. 24, which led to the March 12 low of $39.71. The V bottom has the stock back above its 50-day simple moving average on April 6. The 200-day simple moving average has become a magnet again on the 14th of April.
The stock is above its value in June to $50.38 and tested its quarterly pivot at $55.61 on the 23rd of June. The stock is between its 200-day simple moving average at $53.25 and its quarterly risky level at $55.61.
The weekly chart for Oracle
The weekly chart for Oracle is positive but overbought, with its five-week modified moving average of $53.33. The stock is above its 200-week simple moving average, or the return to the average, to $48.98. Oracle has been above this key average since the week of 3 April.
The 12 x 3 x 3 weekly slow stochastic reading should slide to 83.89 this week, down from 86.20 June 19. In July 2019 the top, this reading has been above 90.00, put the broth in a tire parabolic to the formation of bubbles, and bubbles always pop.
Trading strategy: Buy Oracle stock on the weakness of its monthly value level at $50.38, and reduce holdings on strength to semiannual risky level at $58.79. The quarterly pivot at $55.61 remains a magnet.
How to use my value levels and risky levels: The share price closing price on Dec. 31, 2019, has been an entry to my proprietary analytics. Half-yearly and annual, the levels are still on the charts. Each calculation uses the past nine closes in these time horizons.
The second quarter of 2020 the level has been established based on the 31 March, close by, and the level of the month of June has been established on the basis of the May 29 close. New weekly levels are calculated following the end of each week, while new quarterly levels occur at the end of each quarter. Half-yearly levels are updated at mid-year, the levels are set throughout the year.
My theory is that nine years of volatility between the farm are to assume all possible bullish or bearish event for the stock are taken into account. To capture the volatility of stock prices, investors should purchase shares of the weakness of a plan, the value and reduce the holdings of the strength to a risky level. A pivot is a level value of the risk level that was violated in its time horizon. Hubs act as magnets that have a high likelihood to be re-tested prior to their time horizon expires.
How to use 12 x 3 x 3 weekly slow stochastic readings: My choice of using 12 x 3 x 3 weekly slow stochastic readings has been based on the backtesting of many methods of reading the stock prices of the momentum with the objective of finding the combination that resulted in the least number of false signals. I’ve been following the stock market crash of 1987, so I was happy with the results of more than 30 years.
The stochastic reading covers the duration of 12 weeks, high, low, and close for the stock. There is a row of calculation of the difference between the highest and the lowest compared to the farm. These levels are modified for a fast reading and slow reading, and I found that the slow playback will work best.
The stochastic reading scales between 00.00 and 100.00 with readings above 80.00 considered as overbought and readings below 20.00 regarded as oversold. A reading above 90.00 is considered to be a “swell parabolic bubble” of the training, which is usually followed by a decline of 10% to 20% over the next three to five months. A reading below 10.00 is considered to be “too cheap to ignore,” which is usually followed by a gain of 10% to 20% over the next three to five months.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.