Oracle Stock Flies On Strong Earnings: Here's A Technical Look

Oracle Corp. ORCL shares are trading higher Friday after the company announced better-than-expected fiscal second quarter 2022 financial results. The company increased its share buyback and also declared a quarterly dividend.

Oracle reported quarterly earnings of $1.21 per share, beating the estimate of $11.11 per share. Quarterly revenue came in at 10.36 billion, beating the estimate of $10.21 billion.

Oracle was up 16.64% at $103.54 at time of publication.

See Related: Why Oracle Shares Are Making New All-Time Highs Today

Oracle Daily Chart Analysis

• Shares saw a large gap higher to resistance in what traders call an upward sloping channel. The stock looked to have broken below the support, but the earnings pushed it to the resistance in the channel.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bullish sentiment, and each of these moving averages may hold as an area of support in the future.
• The Relative Strength Index (RSI) shot higher and now sits at 72 on the indicator. This push up into the overbought range shows that the stock saw a large increase in buying pressure and now the buying pressure heavily outweighs the selling pressure.

What’s Next For Oracle?

After seeing the large gap up, the stock may slow down for the next few days and move sideways. Bulls are in control of the stock as it trades near resistance in the channel and above both of the moving averages. If the stock can stay above these moving averages and in the channel, bulls will keep hold of the stock.

Bears are looking to see a break below the support in the channel and for the price to fall below the moving averages to take hold of the stock.