The market action today was typical for a Thanksgiving week. The averages were up and volume was down. So, a stock that was down on better than average volume is something to take note of.
Shares of Oracle (ORCL) were down 0.8% and volume was greater than the 50 day moving average of volume. Take note.
A large head and shoulders pattern has been forming on the Oracle daily chart above neckline support in the $48 area. The June and July highs formed the complex left shoulder and the September high marked the head. A high early this month failed to close the September downside gap and the subsequent fade has formed the right shoulder of the pattern.
Chaikin money flow has been oscillating around its center line and the relative strength index is tracking lower and below its centerline. These readings reflect the loss of positive momentum and a lack of investor commitment.
The head and shoulders downside pattern price target is measured by taking the height of the formation and subtracting it from the neckline. It targets the $43 level and would close the two lower gaps on the chart.