Watch These Oracle Price Levels As Shares Rise on Significant Earnings and Amazon Partnership

Oracle (ORCL) shares rose more than 9% in Monday’s trading session after the enterprise software company reported better-than-expected fiscal first-quarter results and announced a multicloud partnership with Amazon Web Services, the cloud services unit of Amazon (AMZN).

The software giant’s shares had gained about 34% since the beginning of the year prior to Monday’s after-hours surge, as rising demand for its cloud services, especially for artificial intelligence (AI) applications, helped boost profits in recent quarters.

Below, we take a closer look at the technical data on Oracle’s chart and highlight important post-earnings price levels to watch out for. Shares rose 8.9% to $152.30 in after-hours trading on Monday.

Bulls defend retesting trading range

Oracle stock formed a decisive breakout gap above its 12-month trading range in mid-June, but then retraced its course through most of July to the initial breakout area. However, bulls stepped in to defend that important technical level in early August before rallying more than 11% from the previous month’s low ahead of the company’s quarterly results.

Given the forecasted rise in the stock price to a new all-time high (ATH) following the release of an upbeat report, investors can forecast both a short-term and long-term price target using technical analysis.

Short term price target

We can forecast short-term price targets by applying the measurement principle, sometimes called the measured move technique.

This works by calculating the distance between the upper and lower trendlines of the trading range and adding that amount to the June breakout point. For example, we add $27 to $127, which projects a $154 target.

Long term price target

Traders can predict the long-term price target using the bar pattern.

We do this by isolating the stock’s upside from December to June and positioning it from the prior month’s swing low. By doing this, we project an upside target of around $180.

What’s more, the previous rally came over a period of 126 trading days, suggesting that if a similar move were to occur, the stock could remain in an uptrend through early February.

Key retracement level to watch out for

During a pullback or profit-taking, traders should monitor price reaction to the $145 level, an area on the chart that could turn from prior resistance to future support following a forecast rally above this level on Tuesday.

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On the date of writing this article, the author did not own any of the above securities.