Last week we suggested watching for an opportunistic short-sale entry on Oracle Corp. (ORCL) after it gapped back to its prior highs just below the 62 level. This gap-up came on news that it would acquire a stake in Chinese video-app TikTok, something that has of course been all over the news. We still remain skeptical of the entire affair, and tend to believe that ultimately the Chinese government will not allow ORCL and Walmart (WMT) to acquire what would be a total of 20% ownership of TikTok's U.S. operations. Objectively, it smells of extortion at a certain level. In any case, the rally up into the 61-62 level yesterday was just such an opportunistic entry and the stock is now heading for its 10-dma. Full failure would be confirmed by a break below the 10-dma.
Short-Sale Set Up - Follow-Up on Oracle Corp. (ORCL) 9/22/20
|Published:||22 Sep 2020 13:04 ET|
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