Oracle Corporation (ORCL)

Oracle stock forecast: buy or sell

Oracle stock outlook

  • Oracle closed today at $57.53 after rising a 1.54%.
  • Oracle Corporation provides products and services that address enterprise information technology environments worldwide.
No ad for you

Disclaimer:
The comments published in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this text does not have an understanding of the specific situations of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are published for informational motives only

Oracle stock chart overview

Should I buy Oracle stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is ORCL stock a buy?

Currently, Oracle stock matches 2 trading strategies:

Uptrend buy setup

Oracle stock continues to trend higher since in mid-March and has marked a gorgeous 45.57% gain. Price marked a pull back in this uptrend at $50.91 on June 15, and since then it bounced off a 13%. Price just broke out above the entry point at $55.12, but it's still eligible. If price goes beyond $57.88, it would be better to wait to another pullback. If you decide to enter this trade, the suggested stop loss is at $49.61

Buy setupBuy pointStop lossRisk
Uptrend buy setup$55.12$49.6110%

ATH buy setup

All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at all-time highs is that price doesn't have upper resistances, and usually it rises rapidly. However, there's the risk of a bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is so important. Price is now at 3.32% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $59.44. The stop loss would be ordered at $53.50

Buy setupBuy pointStop lossRisk
ATH buy setup$59.44$53.5010%
No ad for you

Should I sell Oracle stock?

Knowing when to sell a stock is even harder than knowing when to buy it. In the same way as when we have to buy shares, deciding when is appropiate to sell is not a random decision, and we must follow our own trading strategy. We like very simple strategies to guide us on when is the best moment to sell our shares. Be aware that these strategies are not intended for shorting ORCL stock

As a rule of thumb, you must never hold an operation that results in higher than expected losses at the time of purchase. The timing to sell shares should always be ruled by the stop-loss (automatic or manual)

Is it time to sell Oracle stock?

Currently, Oracle stock doesn't match any of our preferred sell setups, so if you own Oracle shares and your operation is in profit probably is not time to sell now

No ad for you

Analysts' recommendations to buy or sell Oracle stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 15 brokerage ratings were published for Oracle

No ad for you

Oracle ratings

Brokerage firmRating
Jun 11th, 2020
Wedbush Neutral
Jun 12th, 2020
Credit Suisse Group Strong buy
Jun 12th, 2020
Royal Bank of Canada
Jun 16th, 2020
Wells Fargo & Co Buy
Jun 17th, 2020
Citigroup Neutral
Jun 17th, 2020
Credit Suisse Group Buy
Jun 17th, 2020
Goldman Sachs Group Strong buy
Jun 17th, 2020
Jefferies Financial Group Neutral
Jun 17th, 2020
JPMorgan Chase & Co. Strong buy
Jun 17th, 2020
Morgan Stanley
Jun 17th, 2020
Royal Bank of Canada Neutral
Jun 17th, 2020
Stifel Nicolaus Neutral
Jun 17th, 2020
UBS Group Neutral
Jun 19th, 2020
Argus Strong buyNeutral
Jun 24th, 2020
Goldman Sachs Group NeutralNeutral

Technical analysis

Oracle stock started an uptrend in mid-March, and gained a gorgeous 45.57%. The price action shows higher peaks and higher lows, and along the way provided some buying opportunities for those who wanted to trade in. Latest pullback was on June 15, when price bounced at $50.91. Oracle broke out above $55.12 (its last top) on June 30. That breakout was a good entry point

SMAs overview

A favorite tool of many traders are the moving averages, that easily show trend momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Investors use support and resistance levels as a way to identify price points in the stock price action that tend to behave as obstacles, containing the price of a stock to move up or down. A support level is a level where the price may find support as it falls. Price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue declining until finding another support level. On the other hand, resistance levels are where the price tends to find a curb as it moves up. Likewise, this means that the price is more liable to "bounce off" at this level, and if it finally crosses this level, it will climb easily until it approaches the next resistance

The current resistance levels are:

  • R1: $59.44 (3.32% above)
  • The current support levels are:

  • S1: $56.81 (-1.25% below)
  • S2: $56.54 (-1.72% below)
  • S3: $55.63 (-3.3% below)
  • Bollinger bands

    So-called Bollinger bands are a widely known technique developed by John Bollinger. It is made up of 3 lines that are drawn superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    The price is trading very close to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a sell signal, as price can move in these levels for many days and weeks

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that track price movements to detect when the share or financial asset is overbought or oversold. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    When the Relative Strength Indicator (RSI) moves for so long below 70 and above 30, without indication of overbought and oversold, the indicator becomes of little use, and we are now in such a case.

    No ad for you

    Earnings and financials

    Oracle Corporation (ORCL) reported EPS for the fiscal second-quarter that slightly surpassed Market expectations. Quarterly EPS was $1.20 per share vs. $1.15. This quarterly report represents an earnings surprise of 4.35%. On the contrary, the company said turnover for this quarter was $10.4 billion consistent with the market estimates.

    In contract, the EPS for the same quarter last year was $1.16, so current EPS means a improvement of 3.45%. Revenue sliced a -6.28% on an annualized basis in the Q2, from $11.1B to $10.4B last quarter.

    Oracle is hosting the earnings call next September. Wall Street expects earnings of %s per-share of $0.86, compared to previous quarter that was $1.20. Financial reporting day has a more than usual risk for stock traders as the data disclosed can gap up or down the stock price with very low liquidity and not honouring your buy or stop-loss orders. Have a look company's website to confirm time and details on the earnings call and the earnings report.

    No ad for you