Stock Of The Day / 01.27.25 / ORCL

01.27.2025 / ORCL #ORCL

Fundamentals. General decline in the technology sector amid news of cheaper and less resource-demanding Chinese AI.

Technical analysis.
Daily chart: Movement within a wide range of 198 - 152.40. Strong daily level is ahead which is formed by a gap in September 2024 and confirmed in January 2025.
Premarket: Gap Down on increased volume. We mark the premarket low of 166.00.
Trading session: The first attempt to go below the premarket low at the beginning of the session was unsuccessful, but at the same time the price did not update the previous high and continued its gradual decline. We are considering a short trade upon a breakdown of the 166.00 level, then retest and holding of the level from the opposite side.

Trading scenario: #breakdown with retest of level 166.00

Entry: 165.39 after the breakdown and clear holding of the level.

Stop: 166.18 we hide it behind the candlewick of the retest.

Exit: Close the Part of the position around 157.20 when signs of a change from a downward trend to an upward trend appear. Since the lower high has not been updated, we can hold the remaining part of the position until the slowdown before the strong daily level of 152.40

Risk Rewards: 1/15

P.S. In order to understand the idea behind the Stock Of The Day analysis, read the following information.