ORCL Rising After Positive Analyst Notes

Oracle (ORCL) shares are rising in early trading after positive analyst coverage, as shares are seemingly holding on to a prior supportive area after retreating almost -17% as of yesterday’s close from its all-time highs of 345.72 about a month ago. 

Bullishness in Oracle today comes ahead of its highly anticipated ‘Oracle AI World’ next week in Las Vegas. The event will showcase breakthroughs across Oracle’s cloud portfolio, applications, infrastructure, data management, and, of course, AI.

Baird initiated coverage this morning on the cloud software company with an Outperform rating and a $365 price target, which would represent about a +25% price increase. The note called Oracle the “AI juggernaut for the information age” and said they are well-positioned to benefit on rising artificial intelligence infrastructure.

Phillips Securities also initiated ORCL with a Buy rating and a $350 target this morning. Meanwhile, Mizuho yesterday reiterated its Outperform rating and $350 price target, saying the recent downturn is overblown and they expect gross margins to improve as AI business scales upward.

The price action has seen a notable downswing, with the bulls struggling to retake the level near 292 that represents the old lows after the last earnings gap to the upside from early September. Yesterday’s activity formed a harami candle, meaning yesterday’s smaller green candle was completely encompassed by the previous session’s larger red candle. This suggests interruption in momentum and potential for trend change. Additionally, that same larger red candle on Tuesday did make new intraday lows, but it settled for the day just above 284, which is above its prior relative low close from Sept. 30.

Price is on the verge of breaking above its downward trendline off the highs, with the RSI study also poised for a similar breakout. The yearly Volume Profile study shows heavy trading activity between about 292 and 308, which could be a noteworthy range to watch to the upside. To the downside, the 63-day Exponential Moving Average matches up with a set of old highs from mid-summer near 260.

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