Stock of the day: Oracle

Taking a closer look at the big picture, the stock has been locked in a sideways trend within a rectangle pattern (yellow) since the beginning of the year, with the rectangle pattern present above a key horizontal support level at $85 (green), which was a bullish signal. However, on Friday, the stock broke below this support level, creating a strong signal to sell. This support level had been respected by both sellers and buyers since the middle of 2021.

It is likely that the stock will drop to the 38.2% Fibonacci retracement level, as it was a resistance level in August and September and a support level in December (blue). However, a price close above the green area would signal a potential trend reversal and present a good opportunity to go long on the stock.

Overall, while the recent drop in Oracle's price is concerning, there are still opportunities for investors to make strategic moves and capitalize on potential reversals in the stock's price.