Watch These Oracle Price Levels as Stock Slumps After Earnings, Weak Guidance | Global News Avenue

Oracle (ORCL) stock price fell Extended transaction On Monday, the company reported fiscal second-quarter adjusted earnings. Below Wall Street expectations And it issued weak guidance amid growing competition among cloud service providers.

However, the enterprise software company’s cloud infrastructure revenue soared 52% year over year as demand for the power to run large-scale computing soared Artificial Intelligence (AI) The workload was basically in line with analysts’ expectations.

Competition for cloud services from big tech rivals like Amazon intensifies (Amazon),Microsoft(Microsoft Corporation) and Alphabet’s Google (Google), the software giant significantly increased its infrastructure spending during the quarter, which may raise concerns Capital Expenditure (CapEx) Profit margins may be compressed.

The artificial intelligence narrative surrounding Oracle has helped its stock price rise more than 80% since the beginning of the year, as of Monday’s close, well outpacing Nasdaq Composite Index The return over the same period was 31%.

Below, we take a closer look at Oracle’s charts and usage technical analysis Point out important post-earnings price levels to watch.

rising wedge breakdown

Since late June, Oracle stock has traded at rising wedgea chart pattern that indicates a potential downward trend reverse When crashing.

Most recently, the stock climbed to a new all-time high on Monday, then staged a dramatic intraday reversal amid above-average gains. volumeended the day lower and formed a bearish dark clouds cover Candlestick pattern in this process.

This is an ominous sign that the stock is ready gap The stock fell below the wedge’s lower trendline on Tuesday after the company reported weaker-than-expected quarterly results, potentially opening the door to subsequent earnings-related selling.

Let’s identify a few keys support level Watch on Oracle charts and use measured movement techniques to predict upside price target It’s worth watching to see if the stock resumes its long-term uptrend.

Key support levels worth paying attention to

The first support level to watch is around $177. This price point is currently slightly below 50-day moving average (MA)which can provide support near the upper limit of the narrow range merge It formed on the charts throughout most of October.

Selling below that level could send the stock down to the $165 level, which could attract buying interest closer to $165. groove minor pull back That happened in late September.

A decisive break below this level could lead to a retest of lower support around $145. Dip hunters can look for buying opportunities in this area close to closely watched areas 200-day moving average and several peaks in June and July.

Measuring Upside Price Targets

To predict upside price targets, investors can use the measured move technique, also known as Measurement principle.

To apply this tool to an Oracle chart, we calculate the distance of a rising wedge near its widest point and add that distance to the top trendline of the pattern.

For example, we add $35 to $201 and the forecast target is $236, investors can decide at this level Lock in profits If stocks resume their long-term move higher.

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As of the date of this writing, the author did not own any of the securities mentioned.