Categories: Invest

Oracle faces an immediate resistance after rising on robust Q4 earnings

Oracle Corporation (NYSE:ORCL) jumped 12.24% on Tuesday after Q4 2022 earnings. The company reported total revenue of $11.8 billion in the fourth quarter. The revenue jumped 5% or up 10% in constant currency. The quarterly revenue beat estimates of $11.66 billion, as per IBES data from Refinitiv.

Oracle’s quarter results showed that it remains robust in cloud operations. The cloud revenue rose 19% in the quarter to $2.9 billion. The missing pie in Oracle’s results was the net income. The earnings fell to $3.18 billion from $4 billion reflecting rising costs. CEO Safra Catz says the company will deliver stellar growth over the next quarters.


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With a drop of around 21% year-to-date, Oracle is suffering the same fate as its tech peers. Concerns of economic tightening have hit the stock this year. However, the quarter results underline Oracle as a strong buy stock. We believe that investors should watch this stock as the strong fundamentals support growth. But is it time to buy the stock?

Oracle faces resistance after escaping the oversold level

Source: TradingView

From the technical aspects, ORCL is trading below the 100 and 200 moving averages. The moving averages reinforce a longer-term bearish momentum. However, the stock is escaping an oversold bottom of $63 after the quarter results.

At the current trading of $69, Oracle faces immediate resistance at $73. We expect the stock to slide lower after hitting the resistance. We, therefore, recommend buying after a break above the resistance. However, recession fears could take the stock further lower. Long-term investors could consider buying on a further dip.

Summary

Despite the fundamentals remaining strong, Oracle remains under bearish pressure. The stock is not a buy at the moment.

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