Chart That Predicted Oracle Miss Shows More Downside Ahead
The company warned about the coming quarter and it is getting squeezed in the process.
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Oracle ORCL reported earnings on Tuesday night that were below expectations, as was top-line revenue.
The company earned $1.47 per share in the quarter which missed the FactSet estimate by 2 cents, revenues were light by roughly $250 million. Oracle projects revenue in their fiscal year to rise 15%, a robust number that seems to be rather optimistic. Oracle announced deals with Nvidia NVDA, Meta META and OpenAI. Also, the company raised their dividend by 25% and stated their backlog of orders was up 62%.
Much of that latter news seems positive and bullish, but the stock is down hard today on strong volume. This continues a trend down that has been in place since Oracle missed earnings in early December 2024 (its prior report). The series of lower highs and lower lows is a textbook bearish downtrend.
The ADX (pane three) is turning higher which says the trend is strengthening. The noose is getting tighter on the bulls. Money flow has turned lower, the stock price is just not garnering interest from buyers yet. Notice the purple candles, which reflect full bearish from the GoNoGo composite of indicators.
Regardless of the outlook, it appears more downside for Oracle. This could stop at the $125 area, which is support from August 2024.
