$Oracle(ORCL)$
Zone: $125.18 to $126.94
Invalidation: close under $123.75
Objectives: $133.62, then $141.19
The math: up 6.0% to the first objective and 12.0% to the second, against 1.8% risk on the invalidation, better than 6 to 1 to the second.
Picture a big software name that has been cut down by more than half over the past year and is now sitting just above the low it set for the year. Monday it held its low near $123.75 and closed at $126.06, which in plain words means sellers pushed hard and still could not break the floor. This swing simply bets that floor holds while the bounce walks first toward $133.62 and then toward $141.19, with a close under that Monday low telling us to step aside. Does that patient bounce make sense as a way to play a washed out leader?
Worth watching $127.99, the Monday high. A move over it shows buyers taking back Monday.
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