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|
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2021 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.