Oracle Weakens Under EMA Pressure, Testing $225 Zone
$Oracle(ORCL)$
$236.15 (-1.94%) — Cloud re-rating drags further; watch $225 support or risk breakdown toward $220
Oracle closed at $236.15, down 1.94%, extending its multi-week decline as investors rotate out of enterprise software into high-growth AI and semiconductor names.
The stock is now ~32% below its 52-week high ($345.72) but still +41.7% YTD, reflecting earlier cloud optimism.
Volume came in at 20.3M vs 23.7M avg, consistent with a controlled selloff rather than panic. Weakness continues post-earnings as macro rate sensitivity and multiple compression weigh on large-cap tech.
Technicals & 1-week view
Volume + MACD: momentum remains bearish—MACD line (-12.23) below signal (-8.18) with histogram still negative, showing no recovery attempt yet.
RSI (14) sits at 31.9, near oversold territory, suggesting a potential short-term bounce but no structural shift.
EMA stack: price deeply below 20-EMA ($262.15) and 50-EMA ($267.75), confirming a dominant downtrend.
Key levels: Support $230 / $225 / $220; Resistance $250 / $262 / $268. Bulls need a firm close back above $262 to reverse short-term pressure; otherwise, bias stays down.
Valuation: ORCL trades at 54.8× P/E (TTM), rich versus S&P 500 (~25×) despite slowing EPS growth ($4.31 TTM). Beta ≈ 1.64 amplifies market drawdowns. Street 1-year target ≈ $344, implying upside if execution in AI-integrated cloud improves, but valuation remains stretched in a high-rate backdrop.
Risk & Disclaimer
Earnings multiple contraction, competitive cloud pricing, and macro tightening remain key risks. Technical commentary only, based on same-day TradingView & Yahoo Finance data (Nov 7 close); not investment advice.
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