Swing Trade Idea (ORCL) – February 09, 2023
Our bearish trade for Thursday, February 9th is Oracle Corporation (ORCL). ORCL is part of the Technology Sector, which has performed at 12.39% over the last month, with ORCL underperforming relative to its sector at 0.31% over the same period.
ORCL had a strong rally towards a key level around $88, from where it is showing signs of weakness. As this is a counter-trend trade, we believe ORCL will retrace lower as it has reached a point of exhaustion, with the next support at around $80.
As a stop loss, if ORCL were to trade above $90 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves above $3.90.
