How did Oracle’s decline illustrate a high-risk-reward setup?

This stock surfed down along the 9 EMA for about 34 trading days and fell almost 45%. Looking back, the highest potential risk-reward came when it reclaimed the 9 EMA and then pulled back. In early April, some leading stocks showed relative strength while the market was being beaten down. The semiconductor ETF held up through the downtrend and moved back above the 50 EMA during the first few bounce days. That helped identify a potential change in character and judge how strong the bounce could be.

Source: TACO again | 27 Jul 2026