Watch these Oracle price levels as stock hits record high

Oracle (ORCL) stock is likely to continue to be in the spotlight Tuesday after it surged more than 5% yesterday to a new record high following recent bullish sentiment from several investment firms.

Jefferies analysts raised their price target on the stock from $170 to $190 over the weekend, while New York-based Melius Research on Monday upgraded the stock to “buy,” as both firms are impressed by the software giant’s progress and growth opportunities in the cloud computing market.

Oracle shares are up 22% since early September through Monday’s close, forecasting their best month since October 2022. Investors welcomed the company’s better-than-expected earnings report announced last week along with a new partnership with Amazon’s (AMZN) cloud computing unit, as Oracle continues to build out its presence in artificial intelligence (AI).

The company’s shares rose 0.6% to $171.30 in late trading before the open on Tuesday.

Below we’ll take a closer look at the technical data for the weekly Oracle chart and point out important price levels to watch out for.

RSI indicator flashes in overbought conditions

After reaching a new record high in mid-July, Oracle shares returned to the upper trendline of an ascending triangle before resuming their long-term uptrend in early August.

Gains recently accelerated last week on the highest trading volume since mid-December, although the Relative Strength Index (RSI) is indicating overbought conditions, with a reading above the 70 threshold. As such, the stock could see some short-term gains before potentially executing another uptrend.

Key Retracement Levels to Monitor

During declines, investors should monitor two key price levels.

The first value is $145, which is an area on the chart where the stock could initially find support near last week’s earnings breakout point and a series of comparable trading levels around the July high.

A deeper pullback could see shares retest the $127 level, the same place where the price found buying interest last month near the upper trendline of an ascending triangle. This region also finds additional support from the upsloping 50-day moving average.

Bar Pattern Target Price

To forecast a potential price target above the All-Time High (ATH), we can use a bar pattern. To do this, we isolate the stock’s trend move from the retest of the previous ascending triangle in late January 2021 and reposition it from the retest area of ​​the current pattern. This technique forecasts an upside target of around $215.

It is also worth noting that the previous trend took place over a 45-day trading period, meaning the stock’s current uptrend from last month’s low could continue into early June next year if price history holds true.

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As of the date of this writing, the author does not own any of the above securities.