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What Do Technical Indicators Say about Oracle’s Stock?

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Oracle’s shareholder returns and stock trends

As of June 8, 2016, Oracle’s stock has fallen 9% for the trailing-12-month period. In the trailing-one-month period, it lost ~0.7%. Oracle’s (ORCL) share price has fallen 2.7% in the trailing-five-day period. Previously in the series, we discussed the factors that played a role in Oracle’s recent stock fall.

By comparison, Salesforce (CRM) and Microsoft (MSFT) have generated returns of -0.68% and -1.7%, respectively, in the trailing-five-day period. SAP (SAP) generated a positive return of 1.0% in the same period.

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Oracle’s moving averages, convergence divergence, and RSI

On June 8, 2016, Oracle’s last trading price was $39.03. The stock was trading 2% below its 20-day moving average of $40, 2% below its 50-day moving average of $40, and almost flat with its 100-day moving average of $39. A company’s MACD (moving average convergence divergence) is the difference between its short-term and long-term moving averages. Oracle’s 14-day MACD of -0.13 shows a downward trading trend, as the figure is negative.

Oracle’s 14-day RSI (relative strength index) is 44. If an RSI is above 70, it indicates that the company’s stock has been overbought. An RSI figure below 30 suggests that a stock has been oversold.

Investors who want to gain exposure to Oracle could consider investing in the Technology Select Sector SPDR ETF (XLK). While XLK invests ~3% of its holdings in Oracle, it also has 31% exposure to application software. In the final part of our series, we’ll see what kind of recommendations analysts are giving for Oracle.

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