Oracle Stock is Showing Strength, Can It Complete the W Pattern?

• The Oracle Corporation stock price has made a double bottom at the $103.5 level.
• Berenberg Bank maintains a hold rating with a target price of $110.
• Oracle Corporation’s stock price has surged by over 67% in a year. 

The current market price of the Oracle Corporation stock- $107.08

Oracle Corporation stock’s price jumped by 2.45% intraday with a rise of $2.56. The stock has formed a big gap between the levels of $124.66 and $115.20. Oracle stock’s price has declined by 11.51% in a month, which indicates it was under the control of sellers.

If we observe the current pattern on the chart, then we can say that the price is trying to form the W pattern. The stock price has formed a double bottom pattern at the level of $103.5 and a swing high at $107.3. If the stock crosses the $107.3 level and sustains, there is a high possibility that the stock will complete the W pattern.

If we examine the financial performance of the company, the revenue has seen a significant surge in the last few quarters. The company’s net income has surged by over 56% (YOY) in the previous quarter. This company has witnessed a huge rise in the net debt. Its debt has surged from $57.58 Billion to $85.16 Billion.

What is Hn in the Oracle Corporation’s Chart?

The ORCL stock price is trading very close to the support area of $100.9. This level was crossed by the stock in May 2023. Now, the level is acting as support for the price. Before this, it was the crucial resistance level as the stock had witnessed a huge decline from this level. The stock price has also formed a double-top pattern, which is a bearish pattern. 

ORCL stock’s price resistance levels are present at the level of $115.34 and $126.02. It is marked as resistance 1 and resistance 2 on the chart. The support for the stock is present at $100.90 and $83.31 levels, marked as support 1 and support 2 respectively.

Interpretation of Indicators

Exponential Moving Averages

ORCL stock’s price is currently trading below the 50-day Exponential Moving Average, but trading above the 200-day Exponential Moving Average. The 200-day EMA is present near the support level of $103.27. 

Relative Strength Index

The RSI is currently placed at 40.52, but the slope of the RSI is rising toward the 50 level, which is good for bulls. The RSI has fallen till the oversold trajectory.

Conclusion

ORCL stock price has halted selling at the support level of $103.3, and a 200-day EMA is also present near the support level. It can push the price up, as the RSI is also gaining momentum, which is a good sign for the bulls. 

Technical Level

Resistance – $115 and $126

Support – $103 and $83

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.