The stock market is choppy on Friday following an in-line inflation report. However, there’s no doubt about where Oracle (ORCL) – Get Oracle Corporation Report is going.
Shares are erupting higher on the day, up 15% after the company reported better-than-expected earnings on Thursday evening.
The move was enough to send Oracle stock to new record highs.
It’s not alone, either.
Broadcom (AVGO) – Get Broadcom Inc. Report is also hitting record highs on the day after it reported strong quarterly results too.
Not many look at Oracle stock for 10% or higher moves in a single day. But that’s exactly what we’re getting as strength in its cloud division drives the upside beats.
It’s got momentum and now I’m looking at Oracle to see if it can deliver another 10% move to the upside.
Trading Oracle Stock
Shares had peaked at $98.95 in mid-October, frustratingly short of the $100 mark.
It pulled back with the rest of the market earlier this month, with Oracle stock finding its footing around $88.
That is the range we are using now — $87.72 to $98.95 — to measure the potential upside extensions.
The first extension is near $106 and Oracle temporarily cleared that mark today. If it can continue higher, the 261.8% extension could eventually be on the table, up near $117.
I don’t expect the stock to hit this level in the next few days. However, if it can continue higher, this is a reasonable upside level for intermediate-term traders to target.
On the downside, buyers stepped in near the $100 mark on Friday, which is a bullish sign.
As long as the stock can maintain above the $99 to $100 area, the setup remains bullish in my view.
A close below these marks could have the 10-day and 50-day moving averages in play in the short term.
If we don’t have any meaningful dip in Oracle in the short term, look for the 10-day moving average to catch up to the stock price and act as support on the dips.
With today’s rally to new highs — particularly in the face of some market-wide indecision — look for Oracle to become a buy-on-dip candidate.
For now, over $99 to $100 is the key for bulls.
Read More: Why Oracle Stock Can Rally Another 10% Above Today’s Record High