Stock Of The Day – How To Trade A Reversal In Oracle

Core Viewpoint - Oracle Corporation's shares are experiencing a significant increase following the announcement of several billion-dollar contracts won in the past quarter [1] Group 1: Stock Performance - Oracle's stock is trading significantly higher, indicating positive market sentiment [1] - Some traders believe the stock's upward movement may be excessive and are considering strategies for a potential reversal [1] Group 2: Trading Strategies - Traders anticipating a reversal may wait for Oracle's stock to drop below its opening price, which is viewed as a critical support level [3] - The opening price is considered important, and if the stock falls back to this level, it may find support [3] Group 3: Market Dynamics - Support in the market can be influenced by seller's remorse, where sellers regret their decision if the price increases [4] - Oracle's stock opened at a significantly higher price than its previous closing price, indicating a gap up [4] - If Oracle's stock drops below the opening price, it may lead to a rapid decline due to the lack of trading activity in the gap range [5]