ORCL cap 145 hit

Cap: close under is a hit. Close on the level is a push. Graded on the regular-session close.

A cap is a price above the market where a large amount of options positioning sits. The idea is that this positioning can slow a move up there, so the test is simple: does the stock close under it? When it was posted at 14:10 ET, ORCL traded at 143.25, 1.2% below the cap. On the same map, the next level above was 150 and the next level below was 135. See the original post.

Price never closed a 5-minute bar on the wrong side of the cap. Its closest approach was 0.95 away (144.05); the session range was 136.84 to 144.05. In the last hour price moved down 0.54, from 143.74 to 143.20.

The regular-session close was 143.20, 1.80 (1.24%) under the cap at 145. Under the rule (cap: close under is a hit), that is a hit.

ORCL finished the day up 4.2%, while SPY was down 0.0%. We found no single clear company-specific catalyst for the day in our notes.