Eseandre Mordi
Oracle (ORCL) shares are showing one of the clearest technical signals of the year. After weeks of decline, the stock has hit its most oversold daily condition since spring, sparking questions about whether a bounce might be coming. The stock is now pressing into a key support zone where heavy trading volume previously occurred, and traders are watching closely to see if history might repeat itself.
Technical Picture: Testing Major Support
Oracle is sliding into a significant volume shelf around the $225 mark. These high-activity zones often act as cushions, slowing down or even reversing falling prices as buyers emerge. The daily RSI sitting near 28 confirms deeply oversold territory. Back in April, when ORCL last hit this level, it bounced back strongly. That earlier recovery offers a useful comparison point for what might happen now.
Since September, the price action has been consistently bearish, with the downtrend picking up steam after a failed attempt to reclaim the $275 area. However, a small green candle appearing within the support zone could hint at early buying interest starting to show up.
Below current levels, there's a wide earnings gap sitting between roughly $180 and $190. That represents the next major support cluster if selling continues.
Why the Weakness?
Several factors are weighing on Oracle right now:
- Macro uncertainty affecting tech stocks broadly
- Shifting expectations around enterprise spending patterns
- Profit-taking after the summer rally
- Rotation away from mega-cap tech names
That said, Oracle still has solid long-term drivers tied to AI infrastructure buildout and cloud expansion. These fundamentals could help limit any extended downside if market sentiment steadies.
What's Next?
If buyers step up to defend the $220–$230 support zone, Oracle could recover toward the $245–$255 range in the near term. But if this area fails to hold, the stock might slide deeper toward that earnings gap below.
Right now, ORCL sits at a crossroads: deeply oversold, resting on strong historical support, and catching renewed attention from traders. But it still needs confirmation before any real reversal can take hold.
Eseandre Mordi
