Following a strong earnings report, Oracle shares surged above $160, marking roughly a 1.5-month high:
→ Earnings per share: expected $1.70, actual $1.79;
→ Revenue: expected $16.7bn, actual $17.2bn.

This is the first quarter in 15 years in which both revenue and earnings rose by more than 20%. Additional optimism came from:
→ Cloud infrastructure revenue, which jumped 84% to $4.9bn;
→ Oracle confirming a five-year, $300bn deal with OpenAI (Project Stargate);
→ Total backlog (future revenue) surpassing $553bn.

These developments have the potential to significantly ease downward pressure on ORCL shares, which had been in a downtrend following a record high last autumn.

In our technical note of 5 February, the stock fell below $150, and we:
→ highlighted support levels that could halt further declines;
→ suggested that “smart money” might view prices below $150 as attractive.

That same day, ORCL shares formed a low from which they did not fall further.

Recent price action, including a bullish gap above $160, indicates that buyers are regaining control. However, they may need to exert substantial effort to confirm their strength, given that:
→ the $170 level, formerly support, now acts as resistance (indicated by an arrow);
→ the descending channel (shown in red) remains relevant.

Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.