Oracle Corp. (ORCL) ran into heavy selling after it reported earnings four trading days ago, but recently has been benefiting from the buzz surrounding its bid for a minority stake in Chinese video-app TikTok. This all requires government approvals on both side, and currently certain Congressional members are balking at the idea.
Notice its position on the long-term weekly chart, which forms an enormous punchbowl. We think once the TikTok buzz wears off the stock may be vulnerable to failure. One could take the opportunistic route by shorting along the highs of this range as close to the 61-62 level. Keep in mind, however, that we've heard that ORCL CEO Larry Ellison is meeting with President Trump on this so it may need to play out a little more before becoming outright actionable on the short side, if at all.
Short-Sale Set Up - Oracle Corp. (ORCL)
|Published:||16 Sep 2020 10:57 ET|
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