Oracle (ORCL): Downside levels to watch

Oracle (ORCL): Support levels at 239–232 and 218; Resistance at 268–271

Oracle (ORCL) failed to break out of the bullish flag pattern highlighted in Straight from the Chart on October 16. The stock is now pulling back within its broader absolute and relative uptrends, supported by rising 26- and 40-week moving averages (WMAs). We outline key support levels where ORCL could stabilize.

Pullback to first support zone at 239–232

ORCL has declined 30% from its September 10 intra-day high of 345.72 to today’s low of 239.29. This tests the upper end of initial support near the rising 26-WMA and the 50% retracement of the April–September rally near 239 and 232, respectively.

However, while below resistance at 268-271, risk of deeper downside toward 218

While trading below the 13-WMA near 268 and the October 30 downside gap at 269.76-271.35, the breakdown from a month-long bearish consolidation pattern keeps the risk open for further downside toward 219–218 (pattern count and the September 2 low).

If ORCL can stabilize, clearing resistance at 268-271 would reclaim the uptrend

If ORCL defends supports, a quick recovery above the 13-WMA near 268 and the downside gap at 269.76-271.35, especially on a weekly closing basis, would help confirm a successful test of support and suggest that the broader uptrend (defined by rising 26- and 40-WMAs) is resuming.

Major support if ORCL continues to weaken: 208–198

If selling intensifies, a larger support area exists from 208 to 198, defined by the rising 40-WMA, the 61.8% retracement of the April–September advance, and the June breakout point.

Chart 1: Oracle (ORCL) (top) and relative to the S&P 500 (bottom): Weekly chart

Chart 2: Oracle (ORCL): Daily chart