Oracle share price recovered slightly on Tuesday, snapping a six-session losing streak to close at $128.21. The stock gained 0.27 percent on a day when most stocks bounced back after Monday’s steep decline that had been fueled by fears that the US economy could have entered a recession. However, Tuesday saw a turnaround in the markets, with the tech-heavy Nasdaq Composite up by 1.03 percent, the Dow Jones Industrial gaining 0.76 percent and the S&P 500 up by 1.04 percent.
The recovery comes on the heels of Oracle’s opening of its second public cloud region in Saudi Arabia. That is part of its strategy to claim its share of the Kingdom’s AI-driven economy, whose value is estimated to reach $135.2 billion by 2030. Notably, Oracle (NYSE: ORCL) has trailed its peers in the tech industry in the AI race. However, its grip on off-premise cloud services could see it turn around its earnings in the sector as its infrastructure is built to support AI workloads, whose demands have spiked in recent times.
Oracle share price has closed the last three weeks with red candlesticks, and is down by 3.80 percent on a weekly basis as of this writing. That underlines bearish momentum that will need moves past key resistance levels to create a positive sentiment to potentially reverse the downtrend.
On the 2-hour chart, the price has recently broken above the Volume Weighted Moving Average, which corresponds to $129.07. Therefore, a break above the next psychological barrier at $130.00 could be pivotal to sustaining the upside momentum. Note that the price was rejected at Tuesday’s daily high of $129.99.
However, the RSI closed at 44, signaling an underlying strong selling momentum therefore, a break past that psychological barrier will be key to keeping Oracle share price up.
Oracle share price needs to stay above 128.61 pivot mark to sustain the upside. If that happens, the resulting momentum will likely meet the first resistance at 130.00. However, extended control by the buyers could break above that point and potentially build the momentum to test 131.03. Conversely, a move below 128.61 will signal control by the sellers. That could see the establishment of the first support at 127.70, but extended control could breach that mark, invalidate the upside narrative and potentially build the momentum to test 126.84.
This post was last modified on Aug 07, 2024, 11:46 BST 11:46