Oracle Corporation (NYSE: ORCL) has been trading in a consolidative manner since last Wednesday, staying slightly above the 93.00 zone. Overall though, the stock remains above the upside support line drawn from the low of June 18th, and thus, we would consider the broader outlook to be positive.
We believe that a rebound could be looming soon, with investors initially targeting the 96.60 zone, the break of which could pave the way towards the stock’s all-time high, at around 99.00, hit on October 25th. Slightly higher lies the psychological round figure of 100.00, where another break could see scope for extensions towards the next psychological zone, at around 105.00.
Looking at our short-term oscillators, we see that the RSI rebounded from near its 30 line, while the MACD, although negative, has just poked its nose above its trigger line. Both indicators suggest that the downside speed is flattening, and that the stock could start gathering upside momentum soon. All this supports our view for a potential rebound soon.
In order to start examining a bearish reversal, we would like to see a dip below 91.85, marked by the inside swing high of August 17th. This could confirm the break below the aforementioned upside line taken from the low of June 18th and could initially result in a fall towards the 87.15 barrier, marked by the low of September 30th, or even the low of September 14th, at 84.70. Slightly lower lies the 83.30 obstacle, marked by the inside swing high of June 11th, which if also broken, could allow the slide to continue towards the 79.00 zone, near the inside swing high of June 22nd.
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