I Bought Oracle Today – Here is Why

• Posted by Greg Harmon
• on January 15th, 2014

Oracle climbed steadily between the 2009 low and May of 2011. Since then it had been consolidating in an ascending triangle which it broke out of 3 weeks ago. I missed the initial break out but you can see from the chart below that it carries a target of 48 still $10 higher than the current price. The problem then is how do you enter the stock. You could always just

buy and use a trailing stop. But I prefer to look for a good technical entry. This happened today. If you switch focus to the daily chart below you will see that after the initial break higher the stock pulled back, in a bull flag. It broke the flag on Tuesday and today, Wednesday, it poked its head above the previous high. This was my trigger. You can look at it as a double trigger. Over the flag and over resistance. This also gives you a natural stop loss level under the bottom of the flag. So don’t just give up on a stock if you missed the initial signal. It may give you another opportunity if you are patient.

Don’t forget to download A Longer Perspective, my take on 12 broad markets for 2014 and beyond, for the price of a latte.
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