Trading Idea: - Is Oracle close to Resistance?
Published on Tuesday, 01 January 2013 07:28 Written by TradersHuddle Wire
New York, January 1st (TradersHuddle.com) - Shares of Oracle Corporation (NASDAQ:ORCL) are trading very close to calculated resistance at $34.35. The stock ended the trading session at just $33.02, 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 $29.52 and by the resistance level at $34.35; 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 $29.52 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $34.35 then traders will get an opportunity to enter the stock as it moves to a higher range.