Key Oracle Price Levels to Monitor as Stock Hits Record High on Promising Cloud Growth

Oracle’s shares hit a record high on Thursday after the company reported strong quarterly results. Their sales outlook exceeded Wall Street expectations, causing a surge in their stock price.

According to Oracle, they anticipate a significant increase in revenue this fiscal year, especially from their cloud infrastructure, expected to grow by over 70%. Analysts from KeyBanc described Oracle’s growth projections as “stunning.”

On Thursday, Oracle’s stock jumped 13%, closing just under $200. This marks a nearly 70% increase since early April. In 2023 alone, the stock has risen 20%, outpacing the S&P 500.

Analysts are using technical analysis to track Oracle’s stock movements. An interesting pattern emerged on their chart between March and May, called an inverse head and shoulders. Recently, the stock broke out from this pattern, and momentum surged, indicated by a breakaway gap on heavy trading volume.

Despite the bullish momentum, some analysts warn that the stock may be overbought, with a relative strength index above 85. This could lead to short-term profit-taking.

Using bars pattern analysis, experts predict Oracle’s stock could reach around $275 by mid-December, assuming market trends continue. This analysis leverages historical price movements from previous earnings announcements to forecast future prices.

Investors should also keep an eye on support levels. The first key level is $180, which could attract buying interest from those looking for entry points. If there’s a more significant decline, the lower support level is around $154, which aligns with previous trading activity dating back to last September.

This upward trend reflects broader developments in the tech sector. A recent report from Gartner shows that cloud services continue to grow, with global spending projected to reach $600 billion in 2023. This reinforces the bullish outlook for companies like Oracle that are deeply involved in cloud technology.

In short, while Oracle’s recent results are promising, the market’s volatility means investors should proceed with caution. Analyzing both technical indicators and broader market trends will be key in making informed decisions moving forward.

For further reading on current trends in the tech industry, you can check out the latest from Gartner.

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