New York, July 11th (TradersHuddle.com) - Oracle Corporation (NASDAQ:ORCL) closed the trading day at $29.05, near its 50 day and 200 day moving averages set at $27.63 and $29.08 respectively. Oracle's price action placed the stock above the 50 day moving average but below its 200 day moving average, providing a nice trading setup with clear reference points.
Oracle Corporation (NASDAQ:ORCL) supplies software for enterprise information management. The Company offers databases and relational servers, application development, and enterprise business applications.
Oracle seems to be setting up for a tight range between the 50 day moving average as support and the 200 day moving average serving as resistance.
A tiered approach appears to be the best way to maximize possible movements in the stock, as traders could establish a small position in Oracle and wait for the stock to break out above the 200 day moving average at $29.08. Then they could add to the position as momentum builds with the breakout. On the other hand, if support being referenced at the 50 day moving average set at $27.63 breaks, it could signal further downside for Oracle in the horizon.