Oracle Shares Surge to Record High: What Investors Should Know
Oracle (ORCL) shares have experienced a significant surge, gaining more than 20% this month. This surge follows recent bullish coverage from investment firms and positive developments in the cloud computing market. In this article, we will take a closer look at Oracle’s recent performance, technical indicators, and key price levels to watch.
Bullish Coverage and Record Highs
Oracle shares soared over 5% to a new record high yesterday, following bullish coverage from investment firms. Jefferies analysts raised their price target on the stock to $190 from $170, while Melius Research upgraded the shares to a “buy” rating. Both firms were impressed with Oracle’s advancements and growth opportunities in the cloud computing market.
September has been a remarkable month for Oracle, with shares gaining 22% so far. This marks the company’s best month since October 2022. Investors have been particularly pleased with Oracle’s better-than-expected earnings report and its new partnership with Amazon’s cloud computing unit. These positive developments have contributed to the stock’s surge.
Technical Analysis and Key Price Levels
Analyzing Oracle’s weekly chart, we can identify important technical indicators and price levels to monitor. After reaching a new record high in mid-July, Oracle shares retraced to the top trendline of an ascending triangle before resuming their longer-term uptrend in early August.
Last week, the stock experienced accelerated gains on high trading volume, indicating strong buying interest. However, the relative strength index (RSI) suggests overbought conditions, with a reading above the 70 threshold. This may lead to short-term profit taking before another potential upward move.
During pullbacks, investors should pay attention to two key price levels. The first level to monitor is $145, where the shares may find support near last week’s earnings breakout point and a series of comparable trading levels around the July peak. A deeper retracement could see the stock retest the $127 level, which previously acted as a buying interest area near the ascending triangle’s top trendline. The 50-day moving average also provides additional support in this region.
Bars Pattern Price Target
To forecast a potential price target above the all-time high, we can use a bars pattern. By extracting the stock’s trending move following a retest of a prior ascending triangle in late January 2021 and repositioning it from the current pattern’s retest area, we can project an upside target of around $215.
It’s worth noting that the previous trending move occurred over 45 trading days. If price history repeats itself, Oracle’s current uptrend from last month’s low could continue until early June next year.
Conclusion
Oracle shares have experienced a significant surge, reaching a new record high this month. Positive coverage from investment firms and advancements in the cloud computing market have contributed to this surge. However, technical indicators suggest overbought conditions, and investors should monitor key retracement levels at $145 and $127. By using a bars pattern, a potential price target of around $215 can be projected. As always, investors should conduct thorough research and consider their own risk tolerance before making any investment decisions.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The author does not own any of the securities mentioned in this article.
