SIA Charts’ Relative Strength rankings not only help investors to identify which stocks in a universe are outperforming and underperforming against their peers, but also when relative performance trends are changing. Through the second half of 2023, software producer Oracle (ORCL) steadily sank down the rankings in the SIA S&P 100 Index Report falling from the top of the green zone last July down into the red zone by last December. Along the way falling relative strength helped investors to potentially sidestep a one-day earnings related drop of 12.4% six months ago. Since the beginning of 2024, Oracle has been steadily clawing its way back up the rankings in the SIA S&P 100 Index Report. It left the red zone at the end of January and in March it returned to the Green Favored Zone for the first time. In recent months it has been bouncing around the green-yellow zone boundary. Yesterday in a positive response to positive earnings news, Oracle popped 13.3% and jumped 16 spots in the rankings to 10th place, its highest rank since September. Candlestick Chart Completes an Ascending Triangle. Oracle (ORCL) shares staged a major breakout to a new high yesterday. For nearly a year, the shares had been stuck in a sideways range between $100.00, where former big number resistance had changed to big number support, and $125.00. Starting in January, a new uptrend of higher lows emerged which suggested that long-term underlying accumulation had resumed. Yesterday, the shares punched through $125.00 and rallied toward $140.00 on a jump in volume, indicating renewed interest and the start of a new advance. Measured moves suggest next potential upside resistance may appear near $150.00 or $175.00. Initial support moves up to the $125.00 breakout point from uptrend support near $115.00.
Point and Figure Chart Stages a Big Breakout. After staging a big rally up off of the 2022 market bottom, Oracle (ORCL) shares stalled out last summer and spent almost a year consolidating their previous gains. A higher low and a Triple Top breakout back in March suggested that the shares were starting to advance once again. Since then, more breakouts and higher lows indicated that the shares primary uptrend was resuming, which was confirmed by yesterday’s big Spread Double Top breakout to a new all-time high. Horizontal counts suggest potential resistance may appear near $154.85 or $167.60, followed by $192.50 based on a vertical count. Initial support appears near $129.55 based on a 3-box reversal. With its bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) increasing to a perfect 10 out of 10, ORCL is exhibiting short-term strength across the asset classes.
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