Oracle Corporation (ORCL) has traded in a narrow range for nearly all of 2023. More than 90 percent of the time, shares bounced between $90 on the topside to $85 on the bottom. A 6.25 percent range is tight, maybe even a tad claustrophobic.
Another name for Oracle’s recent price history is consolidation. It happens when Wall Street doesn’t really have an opinion on what’s next, a true neutral rating. Many chart watchers believe the length of consolidation is a potential predictor of how much the stock will move once it exits range bound movements. The longer the consolidation, the bigger the move up or down.
Earnings announcements can be a catalyst that ends trading ranges. Company guidance helps investors move from an uncertain “Neutral” position to the bearish or bullish side of the tape. Oracle is expected to release first quarter earnings on or about next Thursday, March 9, 2023.
Analysts forecast a profit of $1.20 per share (EPS) with revenue hitting $12.42 billion. (1) Bottomline earnings will make all the headlines, but management’s guidance will likely determine ORCL’s direction. A strong outlook that adds to Wall Street’s current expectations could push the software company’s stock price beyond $90. Whereas, an unwelcomed view of tomorrow might see the bottom fall out at $85. Either way, Oracle’s price might be in for a significant price swing.
Bullish speculators might consider call options with a $90 stock price and bearish traders look at put options with an $85 strike price. Just remember, trading earnings and options are very risky and only risk what you can afford to lose.
1 – https://finance.yahoo.com/quote/ORCL/analysis?p=ORCL