Watch Out for These Levels in Oracle’s Stock Price

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Key Takeaways

• Prophet shares jumped in premarket trading Wednesday after the enterprise software company announced AI cloud deals that outbalanced its quarterly results, which fell short of Wall Street expectations.
• Oracle shares are expected to break out from an ascending triangle tabulation pattern to a new record high.
• Share volume has increased in the lead-up to the company’s quarterly results, potentially indicating collecting by institutional investors.
• The measured principle using technical analysis projects a price target in Oracle shares of $158, while the ascending triangle’s top trendline at $129 may offer support during pullbacks.

Oracle (ORCL) shares jumped in premarket trading Wednesday after the enterprise software behemoth announced cloud infrastructure deals with Microsoft (MSFT), Alphabet’s Google (GOOGL) and Chat GPT owner Altruistic AI that outweighed quarterly results that fell short of Wall Street expectations.

Below, we analyze the stock map for the using technical analysis and point out several key levels to watch amid an expected breakout from a well-known map pattern.

Shares Oscillate Within Ascending Triangle

Oracle shares have oscillated within a broad ascending triangle since mid-December, with the fee testing the pattern’s lower trendline on several occasions over the past six months but remaining above both the 50- and 200-day operating averages. 

Typically, an ascending triangle suggests a continuation of the prevailing trend prior to its formation, which in the case of Prophet shares, is a resumption of the stock’s uptrend.

It’s also worth noting that share volume has increased in the lead-up to the attendance’s quarterly results, potentially indicating accumulation by institutional investors who tend to buy shares over time to avoid significantly telling the price.

Monitor These Key Chart Levels

Following Wednesday’s expected breakout from the ascending triangle to a new extreme high, investors can use technical analysis to predict a possible longer-term price target using the measuring principle.

To do this, estimate the pattern’s widest distance in points and add that figure to the triangle’s top trendline. For instance, we add $29 to $129, which invents a price target of $158. Investors may use this level to lock in profits or monitor as a potential region on the chart where the pieces may face selling pressure.

During pullbacks, investors should keep an eye on the $129 level, an area where the worth is likely to find support from the ascending triangle’s top trendline. A breakdown below this region could see a retest of the gauge’s lower trendline, currently sitting around $118.50.

Oracle shares were up 8.3% at $134.05 about two hours before Wednesday’s toe-hold bell.

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