Oracle Corporation (ORCL) Showing Signs Of Being A Roof Leaker

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Trade-Ideas LLC identified Oracle Corporation ( ORCL) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Oracle Corporation as such a stock due to the following factors:

  • ORCL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $890.2 million.
  • ORCL has traded 11.7 million shares today.
  • ORCL is trading at 3.97 times the normal volume for the stock at this time of day.
  • ORCL crossed below its 200-day simple moving average.

'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.

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More details on ORCL:

Oracle Corporation develops, manufactures, markets, hosts, and supports database and middleware software, application software, cloud infrastructure, hardware systems, and related services worldwide. The stock currently has a dividend yield of 1.3%. ORCL has a PE ratio of 19. Currently there are 16 analysts that rate Oracle Corporation a buy, 2 analysts rate it a sell, and 9 rate it a hold.

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