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Buy Oracle Stock after the AWS Deal?

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After the bell Monday, cloud giant Oracle (ORCL - Free Report) delivered EPS of $1.39 on revenues of $13.3 billion. That beat on both top and bottom line. The company also guided EPS for Q2 in the range of $1.45 to $1.49 on revenues up 8 to 10%. They also announced a “strategic multicloud partnership” with Amazon Web Services (AWS). The services is called Oracle Database@AWS, and will provided customers with a unified experience between Oracle Cloud Infrastructure and AWS.

That news helped Oracle rally over $153 in after-hours. That is a monster move taking Oracle up through new all-time highs. Uncharted territory here, ORCL had been lingering near its 50-day moving average ahead of the news. The early August selloff took the stock down to $125.

Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.

Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.

Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.

Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.

Dave Bartosiak's technical analysis approach adds depth to our understanding Oracle’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.


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