Boston, MA 09/19/2014 (wallstreetpr) – Oracle Corporation (NYSE:ORCL) (Closed: 41.55, Up: 1.00%) had a positive day with nothing too significant from the perspective of the trend. The main announcements came after the market hours as the company announced its Q1’15 results, missing the estimates which resulted in a resignation of the CEO, Larry Ellison. The announcement of a quarterly dividend of 12 cents may not be of much help as the stock will most certainly face a bout of selling in the opening moments. The interest from the participants has been huge as clearly evident from the jump in volume at 24.6 million against an average of 13 million, almost double.
In the long term, the stock looks really strong structurally. Like every other IT stock, it fell victim to the massacre of the 2000 bubble burst and dropped to $7.25 from a high of $46.47. But unlike many other stocks, it didn’t keep languishing at the bottom for many years. Actually the 2008-09 low was higher than the previous year lows and that implied the inherent strength of the stock. The series of higher highs and higher lows always remained intact, keeping the long term uptrend in force from the very 2002 bottom of $7.25.
The price is getting closer to the life high with the current level only about 12% away. With the long term strength in its favor, the stock would be an excellent pick in any intermediate correction and the current dip from the August high of $42.04 definitely looks like one.
The disappointing result may extend the corrective period and may drag the price down to the support of $40, or even $39 but that should be used by the investors to invest in this stock for the next few months. The indicators, RSI and MACD, do not signal any serious downside in the short term and if the initial selling pressure is absorbed by the buyers, even a short term bounce to $42-43 can’t be ruled out.
