ORCL Follow Up

ORCL is in a similar situation to WMT as a short trade idea...

 Here's ORCL's Top and a bear flag that failed to reach the upper trend line. ORCL is different then WMT as ORCL is near the bottom of the bear flag rather then the top.

 Here's ORCL breaking below the bottom, if you follow the Edwards and McGee Technical Analysis dogma, then ORCL was a short yesterday and would have been covered yesterday as well, the market understand technical analysis all too well and uses it against technical traders every day like what you see here. ORCL is still an excellent short in my opinion, at least for an initial move to the large descending triangle's lower trendline, (it will probably see volatility there and then make for an even better short). So ORCL is lingering at last support, so again, at important technical levels, the breaks are never as clean in the real world as they are in the T.A. books and seminars.

 The 2 day Trend Channel does a good job in holding ORCL's moves, however, if they run a shakeout and this is just experience and gut, I have no evidence, then near the Trend Channel stop out (on a closing basis), there is a very juicy looking level of resistance, a break through that (at the yellow trendline) would almost certainly shakeout shorts. This is why I prefer wide stops on initial positions, it would be a shame to get booted from a good short on a shakeout move. Just be aware of the area and remember psychology, the market is about fear and greed, the more powerful a shakeout or head fake move, the more it moves emotions which for too many traders dictate decisions.

 The 60 min ORCL chart is ugly, this should easily move to the lower Triangle trendline and after some volatility, much lower.

The daily chart is showing the same negative divergences as well, except this time ORCL wasn't strong enough to make it to the top trend line of the top pattern.