Oracle’s shares slumped in extended trading on Monday after missing adjusted earnings estimates and issuing weak guidance, sending the stock to break down below a rising wedge chart pattern. Investors should watch key support levels around $177, $165, and $145.
The company’s cloud infrastructure revenue surged 52% from last year, but intensifying competition from big tech rivals like Amazon, Microsoft, and Google may have raised concerns about increasing capital expenditure and profit margins.
Since the start of the year, Oracle’s stock has gained more than 80%, far outpacing the Nasdaq composite. The AI narrative surrounding Oracle has driven this gain, with investors expecting a strong cloud services market in the coming years.
Oracle shares are now poised to gap below a rising wedge, which signals a potential downside reversal. Key support levels include $177, where the stock could provide support near the upper range of a narrow consolidation period. A decisive breakdown below this level may see the shares fall to $165 and potentially retest lower support around $145.
Investors can also use the measured move technique to project an upside price target. By adding $35 to the rising wedge’s top trendline, a target of $236 is forecasted – a potential level for investors to lock in profits if the stock resumes its longer-term uptrend.
Source: https://www.investopedia.com/watch-these-oracle-price-levels-as-stock-slumps-after-earnings-weak-guidance-8758687