In stock market, one of the widely used approaches is moving average (50 and 200 days). The base of this methode is technical analysis. Everday , huge amount of shares are sold and bought based on the two average curves.
Right now, for ORCL the 50 days moving average is saturated and slightly moving down, and 200 days moving average is approaching saturation. So millions of people are carefuly watching the stock. If the stock can go up 39 next week, we may be safe. However, if the stock cannot do it, the 50 days moving average will show downward trend, and once the stock penetrates the 50 days moving average, it will not stop till hit 200 days average. Then two things can happen. One, the stock bounces back and trade between 50 days and 200 days average for a few months untill good news brings it up or bad news presses it down. Two, the stock may penetrates the 200 days average. If this happen, it would be very bad for ORCL. I hope it will not be the case. |
