Oracle Stock Jumps 5% To Extend 3-Day Rally To 9.4% On Bullish Technicals

Oracle (ORCL) surged 5.03% in the most recent session, extending its gains to three consecutive days with a cumulative 9.39% advance, reflecting robust bullish momentum.
Candlestick Theory
Recent price action exhibits a strong bullish reversal pattern. The current three-day rally culminated in a large bullish marubozu candle on July 2 (close near the high of $231.9), signaling intense buying pressure. Key resistance is established at the recent swing high of $231.9, while support lies at the June 27 low of $209.96. A confirmed break above $231.9 could target new highs, whereas failure to hold the $216.72 low (July 2 intraday dip) may indicate near-term exhaustion.
Moving Average Theory
The 50-day moving average (MA) has crossed above both the 100-day and 200-day MAs, forming a "golden cross" configuration—a classically bullish long-term signal. Current prices ($229.98) trade well above the 50-day MA (~$185), 100-day MA (~$175), and 200-day MA (~$168), confirming a robust uptrend. Short-term pullbacks are likely to find dynamic support near the ascending 50-day MA.
MACD & KDJ Indicators
The MACD (12,26,9) shows a bullish crossover above the signal line, with the histogram expanding positively—consistent with accelerating upward momentum. Meanwhile, the KDJ oscillator (14-period) registers an overbought condition (K: 85, D: 82, J: 91), suggesting near-term consolidation risk. However, sustained J-line readings above 80 underscore persistent strength, requiring confirmation from bearish reversal candles for meaningful pullback signals.
Bollinger Bands
Volatility expanded notably during the July 2 rally, with prices piercing the upper band ($226)—a sign of strong directional momentum. Bandwidth has widened after a contraction in late June, supporting continued trend persistence. Reversion toward the 20-day moving average midline ($215) could offer entry opportunities, though the upper band breach implies immediate overextension.
Volume-Price Relationship
Volume surged 32% during the July 2 advance compared to the prior session, validating the breakout with high participation—a hallmark of sustainable moves. The three-day rally coincided with progressively higher volume, reinforcing conviction. Conversely, the June 30 rally saw even heavier volume, establishing $218–$228 as a high-interest zone where pullbacks may attract buyers.
Relative Strength Index (RSI)
The 14-day RSI reads 78, entering overbought territory (>70) and implying near-term exhaustion risk. However, such warnings can be muted in strong trends; similar RSI peaks preceded continued gains in early June. Traders should monitor for bearish divergence (e.g., higher highs in price but lower highs in RSI) for reversal cues, though none is currently evident.
Fibonacci Retracement
Applying Fib levels between the March low ($137.70 on March 11) and the July 2 high ($231.9), key retracement supports emerge at $205.45 (23.6%), $194.80 (38.2%), and $184.80 (50%). The recent consolidation around $216–$222 aligned with the 23.6% level, now acting as immediate support. A decisive close above the 138.2% extension level ($230) opens the path toward $250.
Confluence and Divergence
Confluence is observed between Bollinger Band resistance, RSI overbought signals, and Fibonacci extensions near $230–$232, heightening the significance of this zone for directional resolution. No material divergence exists—momentum oscillators align with price strength. The primary risk stems from overbought RSI and KDJ readings against elevated volatility, suggesting consolidation before further upside. Probabilistically, the MA golden cross and volume-backed breakout favor bullish continuation after near-term digestion.