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Oracle’s Stock Surges on Major AI Joint Venture Announcement

Oracle (ORCL) experienced a remarkable surge in its stock price on Wednesday, continuing its upward trajectory for the second consecutive day as investors responded enthusiastically to the announcement of a joint venture between Oracle, OpenAI, and Japan’s SoftBank. This partnership is aimed at establishing a robust infrastructure for artificial intelligence (AI).

The venture, dubbed Stargate, is projected to involve significant investments reaching up to $500 billion over the next four years. The initiative aims to enhance the United States’ leadership in AI technology while creating thousands of jobs domestically. The news of this collaboration emerged early on Tuesday, which contributed to a notable increase in Oracle’s stock price, and was officially announced by former President Donald Trump at a White House gathering that included executives from the involved companies.

In trading on Wednesday, Oracle’s shares rose by 7.5%, reaching approximately $185.50, building on the previous day’s 7% increase. Over the past year, the stock has appreciated nearly 70%, driven by heightened interest in Oracle’s cloud services and database offerings that integrate AI capabilities.

Technical Analysis of Oracle’s Stock Movement

After experiencing a downward trend within a falling wedge pattern since late November, Oracle’s stock achieved a significant breakout from this formation on Tuesday.

This breakout was notable, occurring with the highest trading volume seen since early September, indicating strong interest from investors and potential for continued upward momentum.

The Relative Strength Index (RSI) has moved above the pivotal 50 mark, suggesting a favorable shift in price momentum. However, it remains below overbought conditions, signaling that there is still plenty of opportunity for further price increases.

Below, we explore key resistance levels for Oracle shares and outline support zones that investors should keep an eye on during potential price corrections.

Key Resistance Levels to Monitor

The first critical resistance level to observe is positioned just above the declining 50-day moving average around $178. While the stock is currently trading above this figure, it could act as a resistance point due to historical price trends observed between October and December.

Should the momentum continue, Oracle shares could approach the $196 mark. Investors who acquired shares at lower prices may consider this area as a point for potential profit-taking, given that it corresponds to previous peaks recorded in late November and early December.

Essential Support Levels to Watch

In the event of a downturn, the initial support level to monitor is around $154. This area aligns with the January swing low and coincides with an opening price from an early September price gap, potentially providing a cushion for the stock.

If Oracle shares fall below this threshold, they may revisit support around $145, a level where buying interest has historically emerged, coinciding with multiple peaks observed on the chart from June through early September.

The insights and analyses presented in this article are intended for informational purposes only, and readers are encouraged to conduct further research.

As of the publication date, the author has no holdings in the securities mentioned above.

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