Stock Of The Day: Is It Time To Buy Oracle?

Benzinga·12/12/2025 19:27:35

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Trading in Oracle Corporation (NYSE:ORCL) is volatile on Friday. This follows yesterday's drop of almost 11%. The selling was triggered by a disappointing earnings report.

• Oracle stock is among today’s weakest performers. Why are ORCL shares down?

Some traders are now watching Oracle for a possible rebound. This is why it is the Stock of the Day.

As you can see on the chart, the sell-off ended when the price dropped to around $191. There is a reason why there is support at this level. It had been a resistance level, and resistance levels can convert into support levels.

This is a common occurrence in the market, and it happens because of regretful or remorseful sellers.

Some of the people who sold their shares around $191 in January thought they made the right move when the stock trended lower afterward. They were happy they did so.

This changed in June when the resistance was broken, and the price moved higher.

When this happened, some of the formerly happy sellers came to regret their decisions to sell. A number of them vowed to buy their shares back.

But they also vowed to only do so if they could buy them at the same price they were sold for.

So, when the stock dropped back to around $191 yesterday, these remorseful sellers entered the market as buyers. The large number of buy orders placed by them resulted in creating support.

Stocks can rally after they fall to support levels. This can happen when some of the traders who wish to buy become impatient.

They become concerned that other buyers will be willing to pay higher prices than they are. They know this is who the sellers will go to.

As a result, these concerned buyers increase the prices they are willing to pay. Other concerned buyers see this and do the same.

This can result in a snowball effect or bidding war that can push the price higher. It may be about to happen with Oracle.

Photo: Piotr Swat via Shutterstock