Oracle’s stock hit a 52-week low on July 23, closing at $120.04, despite the announcement of a $7 billion Pentagon contract after market hours. The deal, covering a decade of software services, failed to lift the shares during regular trading, which were already deep in a downtrend.
Technical Downtrend Persists Amid Major Contract News
Trading nearly $60 below its 200-day EMA of $179.98, Oracle's stock shows signs of prolonged institutional selling. The 20-day and 50-day EMAs stand at $139.07 and $158.03 respectively, with the current price far below both. This setup confirms a bearish trend that has been building for months.
Momentum indicators add to the gloom. The daily RSI dropped to 29.63, landing in oversold territory, but in a strong downtrend, this doesn’t signal an immediate rebound. The MACD line remains below its signal line, though the histogram shows a slight uptick hinting at fading downside pressure. Meanwhile, Bollinger Bands reveal the price hugging its lower band near $116.70, signaling sustained selling pressure combined with high intraday volatility, as confirmed by an ATR of $6.56.
The stock’s pivot point is at $121.39, with resistance and support tightly grouped around $123.35 and $118.09, indicating a potential price squeeze near critical levels. On the hourly chart, bears continue to dominate, but the selling momentum is beginning to wane slightly.
This situation highlights the challenge Oracle faces: a significant government contract hasn’t been enough to reverse a multi-month technical decline. Investors remain cautious despite the Pentagon’s commitment, focusing on broader market sentiment and Oracle’s price action.
