Friday December 04, 2009
"We’re seeing a very bullish technical pattern form in the daily stock chart at Oracle (NASDAQ: ORCL)," says Richard Schmidt. Here's the advisor's review from the Stellar Stock Alert.
"The stock is definitely in an uptrend. But since May, the stock has been in an upward trending trading range.
"Now what is that? It’s simply a trading range where the lows of the range are increasing. Let me explain.
"The stock has been trading between $19.47 on the low side and $22.89 on the high side for over six months. Every time the stock corrects, it stops just a little bit higher than the last time it corrected.
"In June, it set the low of the range at $19.47. The next time that low was tested, it stopped at $20.10 and again at $20.65. Each time, the test stopped a little higher.
"Higher lows are very bullish. The same is true on the high end of the trading range – but to a lesser degree. But it’s still very bullish.
"It means the stock is gaining strength to breakthrough to the upside. So much so, that it’s expanding the range upward each time it moves up. The stock is also above both moving averages, which is also bullish.
"The stock is going to need as much strength as it can get to break through the $24 level. So this is great news on the technical side. Add this to the stock's flag formation, and you have a technical recipe for a massive move to the upside.
"Now we just have to wait and watch it happen. It could happen any time. ORCL is a strong buy right now. Buy it before it breaks out in a big way."
