Potential Opportunity In Oracle (ORCL) As AI Stocks Build Rally

Their shares hit an all-time high in extended trading on 09 September, and their CEO also highlighted strong growth across a number of other metrics during the quarter — including all of its main business segments. Cloud services and license support revenue rose 10% from a year earlier, to $10.52 billion, ahead of the Street’s consensus estimate of $10.47 billion. Meanwhile , cloud infrastructure revenue grew 45%, to $2.2 billion, up 45%, while also accelerating from the prior quarter, when it grew by 42%.

So in this article I would like to share that as we are seeing Ai stocks starting to build a rally, and how Oracle performance recently make them a potential stock and opportunity to get into.

I will be sharing on the technical analysis and how I looked at Oracle for both short term and long term.

If we looked at how Oracle have traded on Friday (04 Oct), we could see that Oracle gapped higher from Thursday (03 Oct) and is and is consolidating sideways above 163.89 support.

As long as price is holding above this support level, a further push higher towards 174.80 resistance. The Buying strength is also showing a bullish signal with signs of increased buying demand.

Oracle have been trading well above the short-term and long-term MA and this signals a strong uptrend from the MTF as well, and we should be seeing strength in Oracle trading next week.

But MACD is still showing a downward movement and a bearish signal which could mean that there might be a slight adjustment for Oracle to go below $170 but still stayed above the support around $164.

As long as Oracle can stayed within $164 and $170, I believe it is a potential buy, I will be monitoring the price action on Monday (07 Oct) to see if I can take a posiiton.

As more and more companies are getting AI workloads to run on the cloud, Oracle partnership with AWS makes them another alternative for companies to choose a platform and Oracle cloud database might be something that would be a competitive advantage as AI need data to run.

I am expecting Oracle to continue to perform after a small consolidation that might happen early next week.

Appreciate if you could share your thoughts in the comment section whether you think Oracle would be able to benefit from the rally that might be building as AI stocks begin their rise.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.