Trading Idea: Is Oracle close to Support?

Published on Tuesday, 23 October 2012 09:48 Written by TradersHuddle Wire

New York, October 23rd (TradersHuddle.com) - Shares of Oracle Corporation (NASDAQ:ORCL) ended the trading session close to calculated support at $30.43, a level that will raise the attention of traders looking for an entry point.

Oracle's stock range is defined by its calculated support defined at $30.43 and by the resistance level at $32.79. This range could be used as a reference by traders planning their next move. The area where buyer interest might materialize is defined as calculated support. Stocks trading near support might see upside if it can successfully hold the technical level. However, this area if breached will signal participants that the stock failed to entice buyers to step in to support it.

Traders wanting to establish a position should pay close attention to Oracle's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $32.79 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

Shares of Oracle Corporation closed at $30.8 in the prior trading session.

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