Market Overview

Despite Earnings Beat, Expect More Short-Term Downside In Oracle

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The following stock has been highlighted by VantagePoint ai, an artificial intelligence platform that provides market forecasts 1-3 days in advance. For a free demo click here.

Stocks continue to limp into 2019, with U.S. equities having their worst December since The Great Depression. With that in mind, it's not the best time for companies to be reporting earnings, as traders will look for any excuse to punish a stock. Take Oracle Corporation (NYSE: ORCL) for example. 

The software company reported Q2 EPS and sales above estimates Monday after the close, which would normally be a good sign. But the numbers, $0.80 vs. $0.78 on the EPS and $9.562B vs. $9.53B on the sales, don't appear to have been good enough for now. The stock is trading up a mere 1 percent from Monday's close, but has already dropped $2 from its Tuesday open. 

According to VantagePoint Software, the stock is expected to decline. Take a look at a 3-month chart below. 

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Using the predictive indicators embedded within the VantagePoint platform and its predictive AI technology, we will point out three significant things. We have a bearish crossover indicated by the black simple moving average above the blue predictive indicator on Nov. 21, showing that the stock was entering a downtrend. We can combine that with the VantagePoint propriety neural index indicator moving from the green to the red position on Friday.  This indicator measures strength and weakness for a 48-hour period, in this case, weakness. The move to the red position further makes the case for a potentially bearish scenario. 

VantagePoint ai is a content partner of Benzinga. To see what their indicators say about other stocks, futures, commodities or ETFs, or to get a free demo, click here.

Posted-In: vantagepointEarnings News Short Ideas Tech Trading Ideas

 

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