The Oracle Has Spoken

After September’s Q2 earnings call for Oracle (ORCL), it looked like the big software giant was left behind. Not only was the company being stepped on by the likes of SAP and Microsoft, but their move into the cloud had them trailing Salesforce, RedHat and even Amazon in the chase for new customers. These software names had been making new all-time or multi-year highs in this very strong bull market – but not Oracle. The company’s poor results led to a (well-deserved) beat down on the stock.

However, the technicals show that this big company may be turning the corner. Turnover has improved, and while the stock is well below the recent highs in September, it is now trying to fill the gap and move another 5% higher than the current price. MACD is on a buy signal, and money flow has turned positive, the first time since it broke down mid-September.

I expect to see the stock make a run on the orange lines over the coming weeks. Q3 earnings will be released in about six weeks, which is plenty of time for buyers to show up.