Oracle Corporation (NYSE:ORCL) is climbing higher on Thursday, although shares have dropped by more then 40% since the beginning of June.
But there is a chance it rebounds from here. It is oversold and at a support level. These can be bullish dynamics. This is why Oracle is the Stock of the Day.
Support is a price level where there is a large amount of demand for a stock.
If a stock is in a downtrend, it’s because there are more shares for sale than there are to be bought. This forces the investors and traders who want to sell to undercut each other to attract buyers.
The dynamic changes when they reach a support level. There are enough buy orders to absorb all of the sell orders. This is why downtrends end when they reach support.
