I often discuss pullbacks after breakouts and where we should anticipate support or resistance. Let's take a look at Oracle $ORCL, which broke lower in March, then consolidated and even rebounded a little. ORCL Daily Chart(click to enlarge)Bearish Confirmation:- Eventually, price action showed that the market was bearish by respecting the 200-day simple moving average.- As we can see price respected the 200-day SMA as resistance. This is known as a bearish "sling-shot", which of course signals further bearish correction. - The most recent earnings report was strong, BUT guidance was weak. After all, the earnings report is for Q4 2017 - not very timely. - "Oracle stock drops sharply on guidance" (CNBC)- After failing to climb during the 6/20 session, it looks like a bit of capitulation here. - Investors are seeing great gains in many other tech stocks, so this recent performance of ORCL is likely going to lead to some divestment, and cause some further downside at least to $40. Support:- The weekly chart shows that price is testing the 200-week simple moving average (SMA). In a bullish market we should anticipate support here. - But we have some strong bearish momentum that will likely violate the 200-day SMA. - Instead, we should anticipate support around the rising trendline seen in the weekly chart, which could be around the $40 mark.- I think this $38-$40 area will provide some support at least in the short-term, especially if the weekly RSI is under 30 at that time, which reflects the oversold condition. - Then, the $46 level will be a key resistance for the bullish market to reaffirm its bullish mode. ORCL Weekly Chart(click to enlarge)