Oracle Rises 2.89% to 296.96 as Technicals Signal Bullish Reversal After 4.48% Two-Day Rally

Oracle (ORCL) has demonstrated notable momentum, rising 2.89% to close at 296.96 on October 9, 2025, marking its second consecutive daily gain with a cumulative 4.48% advance over this period. This recent strength follows a significant pullback from the September 10 peak of 345.72, with technical indicators now suggesting a potential trend shift. Below is a comprehensive analysis leveraging the required frameworks.
Candlestick Theory
Recent candlestick patterns highlight a bullish reversal signal. The session on October 7 formed a hammer pattern (open: ~290.59, close: 284.24) with a pronounced lower wick extending to 271, indicating rejection of lower prices. This was followed by two consecutive bullish candles on October 8–9, confirming buyer conviction. Key resistance is now evident at the psychological 300 level (tested intraday at 300.97 on October 9), while support has solidified near 283–287, validated by the October 7–8 lows. The breach above the October 7 high (293.22) signals potential continuation.
Moving Average Theory
The 50-day moving average (MA) near 280 and the 200-day MA near 210 maintain upward slopes, affirming the longer-term bull trend. Crucially, the current price (296.96) trades above all three key MAs (50/100/200-day), suggesting sustained bullish momentum. Shorter-term dynamics reveal a bullish crossover, with the 50-day MA positioned above the 100-day MA, reinforcing the recovery from the September sell-off. Sustained trading above the 50-day MA may further validate strength.
MACD & KDJ Indicators
The MACD histogram has transitioned to positive territory, with the signal line crossing above the MACD line—a classic bullish reversal signal following the September–October downtrend. Concurrently, the KDJ oscillator shows overbought near-term conditions, with the %K line at 86.6 after October 9’s surge. While this hints at potential consolidation, the MACD’s bullish momentum divergence from price lows in early October underscores improving buyer participation.
Bollinger Bands
Bollinger Bands (20-day, 2σ) reflect heightened volatility, with the recent rebound pushing prices toward the upper band near 305. The October 7 hammer formed near the lower band (271), while subsequent closes above the 20-day SMA (near 290) signal bullish momentum. Band expansion during the recovery suggests strengthening upward pressure, though a close outside the upper band may warrant caution for near-term exhaustion.
Volume-Price Relationship
Volume analysis validates bullish conviction. The October 9 advance occurred on 26.3M shares—40% above the 10-day average—and coincided with the highest closing level in three weeks. This contrasts with the high-volume decline on October 7 (31.7M shares), indicating capitulation. The higher volume on up days versus down days since October 7 supports sustainable accumulation.
Relative Strength Index (RSI)
The 14-day RSI has rebounded from oversold territory (<30 on October 7) to 58. This neutral reading alleviates immediate overbought concerns while reflecting recovered momentum. Importantly, the RSI’s higher low on October 7 versus the prior low (September 30) diverged positively from price—a precursor to the current rebound. Further strength toward 70 could signal overbought conditions but currently aligns with bullish momentum.
Fibonacci Retracement
Using the swing low of 152.66 (January 27, 2025) and high of 345.72 (September 10, 2025), key Fibonacci levels emerge. The recent trough at 271 aligned almost precisely with the 38.2% retracement (271.97), establishing a reliable support floor. The current advance faces resistance at the 23.6% level (300.16), which capped intraday gains on October 9. A decisive close above 300 could open the path toward 320 (0% retracement).
Confluence and Divergences
Confluent bullish signals include:
- The Fibonacci 38.2% support (271.97) aligning with the October 7 hammer and Bollinger lower band.
- Rising volume validating price gains, reinforced by the MACD bullish crossover.
- Positive RSI divergence at October 7 lows.
Notably, the KDJ’s overbought reading diverges from neutral RSI conditions, suggesting near-term consolidation but no imminent reversal. Probabilistically, sustained trade above 290 (50-day MA) may signal continued upside, while failure to hold 287 (recent swing high) could invite retesting of the 272 support.