Key takeout
Oracle (ORCL) closed at a record high on Monday after CEO Safra Catz disclosed bullish new developments for Enterprise Software Giant’s cloud business.
In a regulatory filing with the Securities and Exchange Commission on Monday, Catz added that it has signed several large cloud services agreements that are expected to continue to grow by more than 100%, and that it will contribute more than $30 billion to its annual revenues for 2Y28.
Oracle’s shares skyrocketed 56% in the second quarter, earning 31% since the start of the year. This is part of a bullish forecast for the growth of its cloud infrastructure as businesses increase AI spending. Stocks rose 4% to $218.63 in Monday’s session.
Below we take a closer look at Oracle’s chart technology to identify key pricing levels to watch.
Rectangular breakout
Oracle shares integrated shares within the rectangle before staging a volume-backed breakout in Monday’s trading session, indicating a continuing strong uptrend in stock.
Monday’s jump coincided with the support of the relative strength index, which finds support near the indicator’s excessive threshold, highlighting the stock’s recent bullish momentum, but prices approached Monday’s trading range low.
It is also worth pointing out that the 50-day moving average (MA) forms a golden cross beyond the 200-day MA. This is a chart signal that predicts the onset of a new movement.
Use technical analysis to project potential upside targets onto Oracle’s charts and identify key support levels worth watching while capturing potential profits for your stock.
Measured moving upward target
Investors can project upward targets of stocks by using measured movement techniques, also known as measurement principles by chart watchers.
Applying the method to an Oracle chart will calculate the distance of impulsive movement that precedes a rectangle and add that amount to the breakout point of the pattern. For example, add $63 to $217. This projectes a $280 target.
Key support levels worth watching
The first low level of the watch is around $203. Failure to breakout attempts can result in retraces to this region. This may provide support near low trend lines in rectangular patterns.
If you sell more, it could drop to $190. The stock could attract purchases at this location near the low breakaway gap in mid-June, with several closely aligned peaks formed on the charts between November and January.
Finally, a deeper revision of Oracle stocks allows us to reconsider the lower support at a price of $168. Investors may decide to place buy orders in this area near the golden cross pattern, allowing them to perform a horizon linking various corresponding trading activities on the chart dating back to September last year.
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As of the date this article was written, the author does not own the above securities.
