Oracle Stock Rally Sparks Interest: Key Price Points to Watch Amid AI Partnership Buzz

Oracle shares have surged for the second consecutive day, fueled by exciting news of a strategic alliance with OpenAI and Japan’s SoftBank to create advanced AI infrastructure. This collaboration, dubbed Stargate, is poised to inject up to $500 billion in investments over the next four years, aiming to solidify the U.S.'s leadership in artificial intelligence and generate thousands of new jobs.

Highlights:

• Oracle’s stock broke out from a falling wedge pattern on strong volume, signaling potential for continued upward momentum.
• Key resistance levels to monitor are near $178 and $196, while support zones around $154 and $145 could offer buying opportunities during pullbacks.
• The relative strength index (RSI) indicates growing bullish momentum with room to advance before reaching overbought territory.

Following the announcement, Oracle shares jumped approximately 7.5% to trade near $185.50, extending the previous day’s 7% gain. Over the past year, the stock has appreciated nearly 70%, supported by increased demand for Oracle’s AI-enhanced cloud and database solutions.

Technical Breakdown: Falling Wedge Breakout

Since late November, Oracle’s shares had been moving downward within a falling wedge pattern. However, the recent breakout on Tuesday occurred with the highest trading volume since early September, suggesting strong buyer interest and potential for further gains.

The RSI has climbed above the 50 mark, confirming strengthening price momentum while still leaving ample room before hitting overbought levels. This technical setup supports the possibility of continued upward movement.

Resistance Levels to Watch

The first major resistance lies just above the 50-day moving average, around $178. This level corresponds with a trendline connecting several price points from October to December and may temporarily cap gains.

If Oracle’s shares surpass this hurdle, the next target is near $196, which aligns with previous peaks formed in late November and early December. Investors who entered at lower prices might consider this zone for profit-taking.

Support Levels to Monitor

On any pullbacks, the $154 level serves as the initial support, anchored by the January swing low and a breakaway gap from early September. A breach below this could lead to further declines toward $145, a historically significant level featuring multiple peaks between June and early September.

Investors should keep these technical levels in mind to navigate potential volatility as Oracle’s AI venture progresses.

Note: This content is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a professional before making investment decisions.

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