Yesterday, the Oracle Corporation (NYSE: ORCL) delivered its quarterly earnings. The company’s EPS came out at $1.03, managing to beat the initial forecast of $0.97. That said, Oracle’s revenue failed to meet expectations and showed up at $9.73bln against the $9.76bln forecasted. The company is making emphasis on the Cloud services and license support, which is a more profitable segment of their business. However, Cloud licenses and Oracle’s hardware segments failed to deliver good results, as they were down 8% and 6% respectively. This mixture of earnings results was reflected in the company’s stock, which declined slightly, but overall remained flat from mid-July.
The technical picture of the Oracle Corporation stock on our daily chart shows that it is currently trading between two short-term trendlines, a downside one taken from the high of August 17th and an upside one drawn from the low of July 26th. This shows that the share price is slowly getting squeezed, meaning that it might be wise to wait for a breakout through one of the trendlines first, before examining the next short-term directional move.
If the above-discussed upside line surrenders and the stock falls below the 87.98 hurdle, which is marked by the current lowest point of September, that may spook some buyers from the arena, potentially clearing the way to some lower levels. ORCL could drift to the 86.68 obstacle, or even to the 85.51 zone, marked by the low of July 15th, where a temporary hold-up may occur. That said, if there are still no new buyers in sight at that price, the stock might continue sliding, possibly aiming for the 84.66 area. That area is marked by the low of July 8th.
Despite pointing higher, the RSI remains below 50. The MACD continues to look south, while sitting below zero and its trigger line. The two oscillators seem to be in support of the scenario mentioned above, as both indicators show negative price momentum.
On the other hand, if a break through the aforementioned downside line occurs, this might invite a few extra buyers, especially if the stock rises above the 90.83 barrier, marked by the current highest point of September. Such a move could lead to a test of the current all-time high, at 91.78. If the buyers continue to apply pressure and break that obstacle, this will confirm a forthcoming higher high, placing ORCL into uncharted territory. One of the next possible resistance hurdles could be the 93.00 level.
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