Oracle stock (NYSE: ORCL) is shaping up for a dramatic turnaround on Monday, with strong pre-market buying poised to completely erase the losses from the previous session. Despite a weak close, overnight sentiment has shifted decidedly bullish, presenting a critical scenario for traders.
The enterprise software giant ended the last trading day at 210.24 USD, down -2.58 (1.21%). However, the story for the upcoming session looks entirely different. Pre-market data shows the stock trading at 214.00 USD, a significant gain of +3.76 (1.79%) before the opening bell.
Dissecting the Previous Session’s Price Action
Oracle’s intraday chart shows a classic case of late-day selling pressure. The stock opened at 213.69 and spent the first half of the day trading in a stable range, even reaching a high of 214.65. But starting in the early afternoon, sellers took control, pushing the stock into a steady decline. It broke below its previous close of 212.82 and hit a daily low of 209.96 before consolidating near that level into the close. A close near the daily low is typically seen as a bearish signal for the next session.
Key Financials at a Glance
For any trader evaluating Oracle, these metrics are essential:
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Closing Price: 210.24 USD
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Day’s Range: 209.96 (Low) – 214.65 (High)
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Market Cap: Approximately 590 Billion USD (Note: 59.05KCr is a notation equivalent to 5.905 Trillion INR)
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P/E Ratio: 48.42 (A high P/E indicates strong investor expectations for future earnings growth)
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Dividend Yield: 0.95%
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52-Week Range: 118.86 – 216.93
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Quarterly Dividend: 0.50 USD
Will The Stock Go Up or Down on Monday? The Pre-Market Signal is Key
The conflicting signals between the weak close and the strong pre-market make Monday’s open crucial. However, the pre-market action is the most powerful indicator of immediate direction.
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The Bullish Reversal: The pre-market price of $214.00 is the most important piece of data. It suggests the stock will open not only above its weak close but also above the previous day’s open and very close to the session high. This indicates that buyers view the sell-off as an overreaction and a buying opportunity.
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Key Levels to Watch:
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Resistance: The immediate target for bulls will be the 52-week high of $216.93. The stock’s ability to challenge and break this level will determine the next major move.
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Support: The opening price around $214 will become the initial support level. If the stock can hold above this, the bullish momentum is confirmed.
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For Short-Term Traders: The setup is decidedly bullish. The pre-market action suggests a “gap and go” scenario. A strategy could involve looking for a firm open above $214, with a target set towards the 52-week high.
For Long-Term Investors: The dip and rapid recovery signal underlying institutional demand for the stock, likely tied to its strong position in cloud infrastructure and AI. This volatility can be seen as noise within a larger uptrend. The reversal reinforces the long-term bullish case for the company.
In conclusion, despite closing on a low note, Oracle stock is set for a powerful rebound at Monday’s open. The pre-market surge has invalidated the bearish signal from the close. All eyes will be on whether the stock can sustain its opening gains and make a run at its all-time highs.
Disclaimer: This article is for informational purposes only and is based on the analysis of the provided image. It does not constitute financial advice. All investing involves risk, and you should conduct your own research and consult with a certified financial advisor before making any investment decisions.
