Oracle (ORCL) stock experienced a significant surge of over 9% in extended trading on Monday following the release of their fiscal first-quarter results, which exceeded expectations. Additionally, Oracle announced a multicloud partnership with Amazon’s cloud business, Amazon Web Services (AMZN). This partnership is expected to further strengthen Oracle’s position in the enterprise software market and drive future growth.
The strong performance of Oracle’s stock can be attributed to the growing demand for its cloud services, particularly in artificial intelligence (AI) applications. Prior to Monday’s after-hours jump, Oracle’s stock had already gained around 34% since the beginning of the year. This positive momentum has been fueled by the company’s consistent earnings growth in recent quarters and its ability to capitalize on the increasing demand for cloud-based solutions.
Technical Analysis and Key Levels to Monitor
Oracle’s stock chart reveals some important technical levels that investors should monitor in the coming weeks. After a decisive breakaway gap above a 12-month trading range in mid-June, Oracle’s stock retraced the move throughout most of July before finding support at the initial breakout area in early August. This bounce from a key technical level signaled the strength of the bulls in defending the trading range retest.
Shorter-Term Price Target
Using the measuring principle, investors can forecast a shorter-term price target by calculating the distance between the trading range’s upper and lower trendlines and adding that amount to the June breakout point. In this case, adding $27 to $127 projects a shorter-term price target of $154 for Oracle’s stock. This target represents a potential upside for investors in the near term.
Longer-Term Price Target
Investors can also predict a longer-term price target by using a bars pattern analysis. By extracting the stock’s upward trending move from December to June and positioning it from last month’s swing low, investors can project an upside target of around $180 for Oracle’s stock. This longer-term target provides a perspective on the potential growth trajectory of Oracle’s stock in the coming months.
Key Retracement Level to Watch
During retracements or periods of profit-taking, investors should pay close attention to how the price reacts to the $145 level on the chart. This area, which previously served as resistance, may now act as support following Oracle’s projected jump above this region on Tuesday. Monitoring the price action around the $145 level can provide valuable insights into the stock’s short-term price movements.
Conclusion
In conclusion, Oracle’s stock price analysis highlights key levels that investors should monitor after the company’s strong earnings and partnership announcement with Amazon. The surge in Oracle’s stock following the release of their fiscal first-quarter results reflects investor confidence in the company’s growth prospects and ability to capitalize on the increasing demand for cloud services. By keeping an eye on the shorter-term and longer-term price targets, as well as the key retracement level at $145, investors can make informed decisions about their investment in Oracle’s stock.
