Saad Ullah
Oracle (ORCL) shares are sliding into a critical support zone near $240, despite strong revenue guidance and momentum in cloud and AI infrastructure. The technical picture is raising concerns—if buyers can't defend this level, deeper losses could follow.
Oracle's Sell-Off Deepens as the Stock Retests a Major Technical Zone
According to First Fellow, the $240 region represents a multi-week consolidation zone that previously acted as strong support. Price is sitting at $242.31, right on the edge. The 50-day moving average has flattened and now sits above price as resistance, while the 100-day average has also failed to hold.
The 200-day moving average is down near $218, aligning with deeper downside targets if support breaks. Recent red candles show heavier selling volume, typically pointing to institutional profit-taking. If $240 breaks, the next logical targets are $228 and $210, both matching historical support levels.
Why the Market Is Selling Oracle Despite Strong Guidance
Oracle's fundamentals look solid—revenue projections are positive, cloud partnerships are expanding, and AI-driven workloads are boosting Oracle Cloud usage. But technical selling doesn't always follow the fundamentals. When investors rotate out of large-cap tech, when valuations feel stretched, or when market volatility picks up, stocks get hit regardless of earnings power. When key moving averages flip from support to resistance, it creates a cycle where traders sell first and ask questions later.
Oracle Approaches a Crucial Turning Point
Oracle is at a crossroads. If price can't hold above $240, the path toward $228 and $210 becomes likely. If buyers defend this zone, the stock could stabilize and recover toward the 50-day moving average. This is one of Oracle's most important technical tests of the year.
Saad Ullah
