Oracle Chart Flatlines As Death Cross Adds To Tech Stock's Tough Month

Oracle Corp ORCL stock just flashed a Death Cross, and the chart tells a very different story for a company trying to rewrite its cloud destiny.

Chart created using Benzinga Pro

Oracle stock, at $127.16, is well below its 50-day simple moving average (SMA) of $158.48 and 200-day SMA of $160.27. When a stock's 50-day average drops below the 200-day, it triggers what technical analysts call a death cross – and it's not exactly a sign of bullish momentum.

All Signals Point Bearish – Despite A Tuesday Bounce

Even with a brief 3.83% pop on Tuesday morning, Oracle stock remains down over 20% year to date and has shed more than 11% in the past month. The trend is considered strongly bearish, with the share price trading under its eight, 20 and 50-day SMAs.

Oracle stock's Relative Strength Index (RSI) of 29.30 suggests the stock is oversold, while a Moving Average Convergence Divergence (MACD) of a negative 7.86 reinforces the bearish tone.

Simply put, the technical backdrop is grim – and buyers seem to be lurking, but not committing.

Cloud Ambitions In A Tiered Universe

Fundamentally, it's not all bad news. Cantor Fitzgerald just reaffirmed its ‘Overweight’ rating, citing Oracle's expanding footprint in cloud infrastructure. But context matters. While Amazon.com Inc‘s AMZN Amazon Web Services and Microsoft Corp‘s MSFT Azure dominate as tier-one providers, Oracle is still fighting for relevance – sitting in the third tier behind Alphabet Inc‘s GOOGL GOOG Google Cloud Platform.

Oracle's cloud push has leaned heavily on its GPU hardware capabilities and generous discounting to draw in customers. The effort is slowly moving it beyond its legacy base, but Wall Street isn't seeing a near-term payoff just yet.