$ORCL, Oracle Corporation

$ORCL, Oracle Corporation

$ORCL Daily Chart

Trade Date: 09/15/17- 09/18/17

When Oracle released its report on its latest quarterly performance, investors were not happy and their dissatisfaction was clearly shown in its premarket price action. Gapping down 4% premarket, investors lost faith when Oracle revealed it was not able to match previous performance forecasts. The blame lies on its cloud services as its formerly aggressive campaign seem to be no match with that of Amazon’s and Microsoft’s.

Trade Style: Short Term Swing Trade

Position Bias: Bearish

Technical Criteria

  • Price Change: - $ 2.17 and – 4.07 %
  • Premarket Volume: 32,574 shares
  • Daily Average Volume: 22 million shares
  • Average True Range: $ 0.60

Entry Price & Time

            Right off the bat it appears that investors were still looking to get out of this stock as fast as possible. If a stock immediately flushes the way $ORCL has, it’s a major sign of weakness. Additionally, if we see minimal signs of retracement then no one is buying and no one is closing their shorts. The bearish pressure is on.

            But we must stay disciplined and wait for an entry. Once the stock consolidated for a bit below $50.00 we needed to enter once these lows were broken. At 9:35AM, it did just that.

            Entry Price: $ 49.94

            Entry Time: 9:35 AM

            Stop Price: $ 50.75

            Risk: $ 0.81

$ORCL Entry on 1 min. chart

Exit Price & Time

            Exit Price: $ 48.26

            Exit Time: 3:30 PM

$ORCL Exit on 5 min. chart

Results and Evaluation

            It’s been a while since I posted a trade analysis and in part it’s due to not seeing a great setup in a while. But sometimes that’s what trading requires. I like to be extremely picky when it comes to my trades and oftentimes that requires me to be very patient. See the best trades don’t come every day; in fact it can take days or weeks.

           I’ve been sitting around waiting for a trade like Oracle for about one week. That means that during that week, I haven’t placed a single trade. When Oracle did finally show up on my radar, I took the short without hesitation. Sometimes you need to wait for the white whale, even if that means passing on a few small fries.

Risk: $ 0.81

Reward: + $ 1.68

R Multiple: + 2.07 R