Shares of Oracle (ORCL) surged nearly 9% in extended trading on Monday after the company reported better-than-expected fiscal first-quarter results and announced a multicloud partnership with Amazon’s (AMZN) cloud business, Amazon Web Services. This positive news comes as Oracle’s stock has already gained around 34% since the beginning of the year, driven by increasing demand for its cloud services, particularly in artificial intelligence (AI) applications.
Bulls Defend Trading Range Retest
Oracle shares experienced a breakaway gap above a 12-month trading range in mid-June. However, the stock retraced the move throughout most of July, falling back to the initial breakout area. Despite this retracement, bulls stepped in to defend this important technical level in early August, leading to a rally of over 11% from last month’s low ahead of the company’s quarterly results.
Shorter-Term Price Target
Using the measuring principle, we can forecast a shorter-term price target for Oracle. This technique involves 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 target of $154.
Longer-Term Price Target
To predict a longer-term price target, we can use a bars pattern. By extracting the stock’s upward trending move from December to June and positioning it from last month’s swing low, we can project an upside target of around $180. Additionally, the previous advance occurred over 126 trading days, suggesting that the shares could remain in an uptrend until early February if a similar move were to play out.
Key Retracement Level to Watch
During retracements or periods of profit taking, it is important to monitor how the price responds to the $145 level. This area on the chart may transition from providing prior resistance to offering future support following the stock’s projected jump above this region on Tuesday.
In conclusion, Oracle’s shares have surged after the company reported strong fiscal first-quarter results and announced a partnership with Amazon Web Services. Investors should keep an eye on the shorter-term price target of $154 and the longer-term target of $180. Additionally, the $145 level may serve as a key retracement area to watch. As always, it is important to conduct thorough research and analysis before making any investment decisions.
Disclaimer: The comments, opinions, and analyses expressed in this article are for informational purposes only and should not be considered as individual investment advice. The author does not own any of the securities mentioned.
