Oracle Stock Chart: Key Support Level Tested After Earnings Fail

What a difference a quarter makes. After falling about 3% at the start of Friday’s session, shares of Oracle (ORCL) – Get report from Oracle Corporation are now up after the software major reported earnings.

The company reported earnings online and missed its earnings forecast. Although the cloud’s outlook has impressed, investors are struggling to up the ante.

It hasn’t been a very good run for Oracle. The stock hit new 52-week highs in December, but at last month’s low it was down around 34% from the highs.

Currently, stocks are still down about 30% from that mark and encroaching on this month’s low of $73.11.

While some of the big and megacap tech stocks — especially those considered value stocks — have held up much better than their growth counterparts, it still hasn’t been easy.

Let’s look at the chart to see which key levels stand out here.

Trading Oracle Stocks

Oracle stock daily chart.

When Oracle stock rebounded in December, it finally broke through the $100 mark and reached the 161.8% extension to near $106.

Once that price target was reached, the Oracle could hold $100. Instead, stocks fell below that mark just a week after the big rally to the upside.

The stock rallied back to $100 and was harshly rejected. Oracle shares have fallen in 10 consecutive sessions.

It’s been quite a skid since, with Oracle falling in seven of the last 10 weeks. Two of those weekly gains were less than 0.4%.

From here, I want to see if Oracle can avoid breaking this month’s low and can continue to hold the 21-month moving average.

If it can do that and build above $75, it opens the door for a possible weekly rotation to the upside and pullback from the 10- and 21-day moving averages.

Perhaps more importantly, the stock would avoid making new lows after earnings and back above downtrend resistance (blue line).

In this scenario, this would bring the 10-week, 10-month, and 50-day moving averages into play near $80 to $81.

On the downside, a breakout and close below the March low would put the February low on the table near $70.

A move and close below $70 could ultimately open the door to the 200-week and 50-month moving averages. As they rise, they currently come into play near $61 to $63.

Karen J. Nelson