Watch These Oracle Price Levels as Stock Surges on Optimism About AI Joint Venture

Oracle (ORCL) shares soared Wednesday for the second straight session as investors reacted to news that the enterprise software company will form a joint venture with OpenAI and Japan’s SoftBank to build artificial intelligence (AI) infrastructure.

The initiative, named Stargate, is expected to involve investments of as much as $500 billion over the next four years, as the project aims to bolster American AI leadership and create thousands of U.S. jobs. Reports of the JV surfaced early Tuesday, which gave Oracle a boost yesterday, and were confirmed by President Donald Trump at a White House event last night with executives from the three companies.

Oracle shares were up 7.5% at around $185.50 in afternoon trading Wednesday, adding to yesterday’s 7% gain. The stock has risen nearly 70% over the past year, supported by growing demand for the company’s AI-integrated cloud and database offerings.

Below, we break down the technicals on Oracle’s chart and identify crucial price levels to watch out for.

Falling Wedge Breakout

After trending downwards within a falling wedge since late November, Oracle shares staged a decisive breakout from the pattern on Tuesday.

Impressively, the move occurred on the highest trading volume since early September, setting the stage for follow-through buying.

Meanwhile, the relative strength index (RSI) has moved back above the 50 threshold to signal improving price momentum, but still remains significantly below overbought levels, giving the stock ample room to explore higher prices.

Let’s point out two key overhead areas on Oracle’s chart that may come into focus amid further buying and also identify important support levels to monitor during pullbacks.

 Key Overhead Areas to Watch

The first higher area to watch sits just above the falling 50-day moving average around $178. Although the stock trades above this level Wednesday, it could provide resistance near a trendline that links a range of comparable price points on the chart from October to December.

Further upside could see the shares climb to the $196 area. Investors who have bought at lower prices may look for exit points in this location near the stock’s twin peaks that formed in late November and early December.

Important Support Levels to Monitor

During declines, investors should initially monitor how the price responds to the $154 level. The shares could encounter support in this area from the January swing low, which also closely aligns with the opening price of an early-September breakaway gap.

Finally, selling below this level could see the Oracle shares revisit lower support around $145, a location where investors may seek entry points near multiple peaks that formed on the chart between June and early September.

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As of the date this article was written, the author does not own any of the above securities.