HOT TOPICS LIST
- MACD
- Fibonacci
- RSI
- Gann
- ADXR
- Stochastics
- Volume
- Triangles
- Futures
- Cycles
- Volatility
- ZIGZAG
- MESA
- Retracement
- Aroon
INDICATORS LIST
LIST OF TOPICS
PRINT THIS ARTICLE
by Arthur Hill
Oracle is showing some relative strength over the last few days, and confirmation of a bullish candlestick reversal pattern would forge a breakout.
Position: Accumulate
Arthur Hill
Arthur Hill is currently editor of TDTrader.com, a website specializing in trading strategies, sector/industry specific breadth stats and overall technical analysis. He passed the Society of Technical Analysts (STA London) diploma exam with distinction is a Certified Financial Technician (CFTe). Prior to TD Trader, he was the Chief Technical Analyst for Stockcharts.com and the main contributor to the ChartSchool.
PRINT THIS ARTICLE
CANDLESTICK CHARTING
Oracle Firms Within A Channel
03/07/07 08:41:35 AMby Arthur Hill
Oracle is showing some relative strength over the last few days, and confirmation of a bullish candlestick reversal pattern would forge a breakout.
Position: Accumulate
| Figure 1 shows Oracle (ORCL) and the price relative (blue line). The price relative is formed by dividing the price of the stock by the price of the index. In this example, I am using the NASDAQ 100. The price relative firmed the last two weeks of February and then turned up at the end of February with a surge over the last five days. Why this surge? Because Oracle held firm over the last five days and the NASDAQ 100 declined sharply. The combination makes the ORCL/NDX ratio rise and shows relative strength from Oracle. Relative strength is often one of the first signs of absolute strength. |
|
| FIGURE 1: ORACLE, DAILY. The price relative is formed by dividing the price of the stock by the price of the index. |
| Graphic provided by: Telechart 2007. |
| |
| Turning to the price chart for Oracle (Figure 2), we can see a well-defined falling price channel over the last two to three months. This channel marks out a clear downtrend since mid-December, and it would take a move above 17.37 to break resistance. Such a move would reverse the downtrend and call for higher prices in the coming weeks and months. |
|
| FIGURE 2: ORACLE, DAILY. Here we can see a well-defined falling price channel for the last two to three months. |
| Graphic provided by: Telechart 2007. |
| |
| There are signs of buying pressure within the channel. I already pointed out relative strength over the last five days, and the stock formed a bullish engulfing on higher volume last week (green box). As its name implies, this is a bullish candlestick reversal pattern that requires confirmation and a move above 17.37 would provide confirmation. Considering recent NASDAQ weakness, I am quite impressed with the high-volume advance four days ago. High volume shows a lot of buying interest and traders should be on guard for a follow-through breakout. |
Arthur Hill is currently editor of TDTrader.com, a website specializing in trading strategies, sector/industry specific breadth stats and overall technical analysis. He passed the Society of Technical Analysts (STA London) diploma exam with distinction is a Certified Financial Technician (CFTe). Prior to TD Trader, he was the Chief Technical Analyst for Stockcharts.com and the main contributor to the ChartSchool.
| Title: | Editor |
| Company: | TDTrader.com |
| Address: | Willem Geetsstraat 17 |
| Mechelen, B2800 | |
| Phone # for sales: | 3215345465 |
| Website: | www.tdtrader.com |
| E-mail address: | arthurh@tdtrader.com |
Traders' Resource Links | |
| TDTrader.com has not added any product or service information to TRADERS' RESOURCE. | |
Click here for more information about our publications!
Comments
Date: 03/09/07Rank: 4Comment:
Date: 03/12/07Rank: 5Comment:
|
Request Information From Our Sponsors
- StockCharts.com, Inc.
- Candle Patterns
- Candlestick Charting Explained
- Intermarket Technical Analysis
- John Murphy on Chart Analysis
- John Murphy's Chart Pattern Recognition
- John Murphy's Market Message
- MurphyExplainsMarketAnalysis-Intermarket Analysis
- MurphyExplainsMarketAnalysis-Visual Analysis
- StockCharts.com
- Technical Analysis of the Financial Markets
- The Visual Investor
- VectorVest, Inc.
- Executive Premier Workshop
- One-Day Options Course
- OptionsPro
- Retirement Income Workshop
- Sure-Fire Trading Systems (VectorVest, Inc.)
- Trading as a Business Workshop
- VectorVest 7 EOD
- VectorVest 7 RealTime/IntraDay
- VectorVest AutoTester
- VectorVest Educational Services
- VectorVest OnLine
- VectorVest Options Analyzer
- VectorVest ProGraphics v6.0
- VectorVest ProTrader 7
- VectorVest RealTime Derby Tool
- VectorVest Simulator
- VectorVest Variator
- VectorVest Watchdog