Stock of the Day: Where is the Bottom for Oracle?

Oracle Corporation (NYSE:ORCL) is consolidating Friday. Shares have dropped about 60% since hitting an all-time high last year. But the recent downtrend may end soon. The shares are nearing a support level. This is why Oracle is the Stock of the Day.

Support is a price or level where demand for a stock is strong. In other words, there are many buy orders.

If a stock is in a downtrend, it is because there are more sell orders than buy orders. This forces investors and traders who want to sell to undercut each other, creating a downtrend.

These trends end when they reach support. Buy orders are strong enough to absorb all the sell orders.

As you can see on the chart, $120 has been a support level for Oracle. This is where a downtrend ended in April 2025. After this, a rally followed.

When this happened, people who sold at the bottom thought they made a mistake. Some decided that if they could repurchase their shares at the same prices they sold them for, they would.

When Oracle dropped back to $120 in July, they placed buy orders. So many of these orders created support at that level.

If the current downtrend reaches $120, people who sold at the bottom in July will try to buy their shares back. If there are enough of these buy orders, support will form again.

Shares rally off support when some of the buyers who created it become anxious and impatient. They start to outbid each other and this could cause a bidding war that forces the shares into an uptrend.

If Oracle hits $120, it may reverse and head higher.

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