Peter Smith
Oracle (ORCL) recent price movement shows a dramatic extension of the selloff that started after a technical warning surfaced on the daily chart. The decline has pushed ORCL into oversold levels, creating a situation where markets typically pause and look for stability.
Chart Analysis: Downtrend Accelerates Toward Support
Trader kpak pointed out that "ORCL (daily) gave us warning before the sell," and the chart now reveals exactly how that warning played out. The stock couldn't maintain the crucial 258 dollar zone, sparking a quick drop. Once momentum shifted, Oracle fell below short-term EMAs and entered a steep slide approaching a high-volume demand region.
The graphic shows a sharp rejection from the 258 dollar supply area. After a brief pause — marked with a circled candle — sellers regained control, creating large red candles and a nearly vertical decline. ORCL now trades beneath the 9-, 20-, and 50-day EMAs, showing strong bearish momentum. The 234 dollar level might act as the next stabilization zone if buyers emerge.
What's Driving the Pressure on Oracle
Oracle's drop fits the wider market pattern where big tech names have been pulling back after extended rallies, as money flows toward safer options. Questions about cloud margins, AI infrastructure costs, and corporate IT spending have added pressure on ORCL's valuation. After Oracle's quick surge earlier in the quarter, the stock became vulnerable to fast profit-taking once momentum faded.
What Comes Next: Consolidation Appears Likely
Despite the strong selloff, ORCL has stretched far below its near-term moving averages. This type of exhaustion typically leads to sideways movement or a small bounce as selling pressure eases. The key levels to watch include:
- The current demand area around 234 dollars
- Short-term EMAs that could act as resistance on any recovery
- Volume patterns that might signal whether buyers are stepping back in
If the stock holds above the demand zone, consolidation could form. But if this area breaks, further downside becomes likely.
Peter Smith
