Oracle (ORCL) is a big and stable company, that is very profitable and has lots of cash reserves. In other words, a safe stock to trade. In the beginning of May 2010 the whole market, including ORCL, tanked, and right after a few down days, high speed trading computers together with order backlogs in some trading houses, caused a huge spike down.  The market, and ORCL, recovered the next days after that with a jerk reaction up towards the 10 day Moving Average (10MA).

Understand the situation in terms of the indicators (Price, Moving Averages, Volume, Stochastics, ADX, +DI and -DI, and MACD) and settle on your next move: buy long, sell short, or do nothing.

When ready, continue by clicking here.