Peter Smith
⬤ Oracle stock bounced back after reaching its 200-day moving average, stopping a sharp decline that had pushed shares down from recent highs. The stock traded at $226.31 after dipping near $210, with technical indicators showing oversold conditions that helped trigger the reversal. This support level proved crucial for maintaining the stock's position in the AI infrastructure trade.
⬤ The stock formed lower highs from early September through November, facing resistance at shorter-term moving averages before finally testing the 200-day line around $208.85. Trading activity increased during the rebound, a notable shift from the quieter selling that characterized earlier drops from peaks at $291, $275, and $247. Momentum indicators remain negative, suggesting the recovery is building from a weak technical foundation.
⬤ The bounce at the 200-day average matters because Oracle sits at the center of enterprise AI infrastructure through its cloud services and database platforms. Strong demand for AI workloads drove the stock higher earlier this year, and the recent stabilization suggests the underlying uptrend hasn't broken despite two months of correction.
⬤ Holding above this key technical level could help stabilize sentiment across enterprise software stocks and shape how traders view the strength of the cloud and AI infrastructure sectors going forward.
Peter Smith
