Is Oracle Closing in to Resistance?

Published on Wednesday, 18 July 2012 08:12 Written by TradersHuddle Wire

New York, July 18th (TradersHuddle.com) - Shares of Oracle Corporation (NASDAQ:ORCL) are trading very close to calculated resistance at $29.98. The stock ended the trading session at just $29.92, which is near levels that make it difficult to buy or start a position.

Oracle Corporation (NASDAQ:ORCL) supplies software for enterprise information management. The Company offers databases and relational servers, application development, and enterprise business applications.

Oracle's stock range is defined by its calculated support defined at $27.24 and by the resistance level at $29.98; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Oracle. However, as the stock pulls back towards $27.24 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $29.98 then traders will get an opportunity to enter the stock as it moves to a higher range.