Watch These Oracle Price Levels as Stock Hits All-Time High on Cloud Business Optimism

Yahoo

01-07-2025

Oracle shares closed at a record high on Monday after CEO Safra Catz disclosed bullish new developments about the enterprise software giant's cloud business.
The stock consolidated within a rectangle before staging a volume-backed breakout in Monday's trading session, signaling a continuation of the stock's strong uptrend.
A measured move, which calculates the distance of the impulsive move higher that preceded the rectangle and adds that amount to the pattern's breakout point, projects an upside target of $280.
Investors should watch key support levels on Oracle's chart around $203, $190 and $168.Oracle (ORCL) closed at a record high on Monday after CEO Safra Catz disclosed bullish new developments about the enterprise software giant's cloud business.
In a regulatory filing Monday with the Securities and Exchange Commission, Catz said the company's MultiCloud database revenue continues to grow at over 100%, adding that the company had signed multiple large cloud services agreements, including one that is expected to contribute more than $30 billion in annual revenue starting in FY28.
Oracle shares surged 56% in the second quarter and have gained 31% since the start of the year, due in part to bullish projections about the company's cloud infrastructure growth as companies ramp up AI spending. The stock rose 4% to $218.63 in Monday's session.
Below, we take a closer look at the technicals on Oracle's chart and identify key price levels to watch.
Oracle shares consolidated within a rectangle before staging a volume-backed breakout in Monday's trading session, signaling a continuation of the stock's strong uptrend.
Monday's jump coincided with the relative strength index finding support near the indicator's overbought threshold, highlighting the stock's recent bullish momentum, though the price did close toward the low of Monday's trading range.
It's also worth pointing out that the 50-day moving average (MA) crossed above the 200-day MA to form a golden cross, a chart signal that predicts the start of a new move higher.
Let's use technical analysis to project a potential upside target on Oracle's chart and also identify key support levels worth watching during potential profit-taking in the stock.
Investors can project an upside target in the stock by using the measured move technique, also known by chart watchers as the measuring principle.
When applying the method to Oracle's chart, we calculate the distance of the impulsive move higher that preceded the rectangle and add that amount to the pattern's breakout point. For instance, we add $63 to $217, which projects a target of $280.
The first lower level to watch sits around $203. A failed breakout attempt could see a retracement to this area, which may provide support near the rectangle pattern's lower trendline.
Further selling could trigger a fall to $190. The shares may attract buying interest in this location near the low of a breakaway gap in mid-June and several closely aligned peaks that formed on the chart between November and January.
Finally, a deeper correction in Oracle shares could see the price revisit lower support at $168. Investors may decide to place buy orders in this region near the golden cross pattern and a horizontal line that links a range of corresponding trading activity on the chart stretching back to last September.
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