It’s beginning to feel like there is no place to hide. Stocks can’t hold onto gains and industry chart after industry chart looks vulnerable. Gold might have some upside but then again, the dollar seems to be waking up. A rising dollar normally sinks commodity prices.
Event driven trading might be the way to go during this environment.
Oracle Corporation (ORCL) will announce its second quarter fiscal year 2023 results on Monday, December 12th, after the close of the market. Wall Street expects the software giant to earn $1.18 for the quarter with sales of $12.04 billion. (1)
Earnings results have been hit or miss in the last four quarters, topping expectations twice and delivering disappointing results in the other two financial checkups.
ORCL shares have room to move either way after the second quarter’s numbers are announced. Much like the overall market, Oracle’s stock price has come down from its recent high of $84.53. It trades at $78.81 as we type.
A negative result on Monday evening and ORCL could trade down to support at its 200-day moving average of $73.74. It’s our opinion the 200-day mark would likely be the worst outcome unless results and management’s guidance are awful.
We say that because ORCL is on the verge of the “Golden Cross”. It’s when the 50-day moving average crosses from below to above the 200-day trendline. It’s considered a technical “buy signal” by chart watchers and you can bet Wall Street’s algorithms are aware of the possibility too.
The potential of a bullish cross with plus earnings and positive forward-looking statements could put ORCL shares into high gear. The combo might push ORCL right back to its recent high in the mid-$80s and possibly beyond.
Trading earnings is a high-risk strategy and only appropriate for speculators who can afford to lose money in a short time frame.
1 – https://finance.yahoo.com/quote/ORCL/analysis?p=ORCL