Oracle Corp (NYSE:ORCL) shares are dipping Thursday, reversing an earlier gain that followed a report of a major new leasing agreement with Tencent.
- Oracle stock is showing downward bias. What’s ahead for ORCL stock?
Oracle Shares Reverse After Rising On Tencent Lease Report
Oracle stock jumped nearly 2% before Thursday’s opening bell. The move came after the Financial Times reported Tencent Holdings Ltd (OTC:TCEHY) had locked in a five-year lease spanning several Oracle data centers across Southeast Asia.
Under the reported terms, Tencent would gain access to about 100,000 cutting-edge AI chips it otherwise can’t obtain inside China. The arrangement is said to be worth roughly $7 billion, with close to a third of that due upfront. Neither company responded when asked to confirm the details. Despite that early pop, Oracle shares reversed course and are now trading lower on the day amid overall market weakness.
The deal reflects a broader scramble among Chinese tech firms for overseas computing capacity, as domestic chip supply stays tight and U.S. export restrictions persist.
Oracle’s Chart Remains in a Difficult Technical Spot
Setting today’s reversal aside, Oracle’s longer-term chart still looks rough. Shares sit well beneath every major trend line, running 7.1% under the 20-day average, 4.9% under the 50-day mark, and more than 16% below the 200-day line. That gap suggests buyers keep getting sold into rather than rewarded. Zooming out further, the stock has lost nearly 53% of its value over the past year, and the 50-day average has remained stuck beneath the 200-day ever since a death cross formed back in January.
Momentum readings aren’t painting a pretty picture either. MACD sits under its signal line and the histogram remains negative, a combination that typically points to fading upward momentum unless buying pressure picks back up meaningfully.
Watch $153.50 as a resistance point, since it sits close to where the longer moving averages cluster overhead and past rallies have stalled there before. On the downside, $135 marks a support zone not far from where the stock trades now, an area that’s previously attracted buyers.
ORCL Shares Are Dipping
ORCL Price Action: Oracle shares were down 0.82% at $136.18 at the time of publication on Thursday, according to Benzinga Pro.
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