Is Oracle’s earnings drop a ‘buy the dip’ moment?

September 14, 2021 20:48

Shares in Oracle dropped more than 3% after the database software company posted revenue that missed expectations.  

However, the company did post earnings per share of $1.03 which beat expectations of just 97 cents per share.  

With Oracle shares trading at record highs, it needed to be a stellar earnings report to attract buyers at those levels.  

The sell-off could be a bit of profit-taking which could lead to a ‘buy the dip’ opportunity... and the chart looks very interesting.  

Source: Admirals MetaTrader 5#ORCL, Daily - Data range: from 4 Dec 2020 to 14 Sep 2021, performed on 14 Sep 2021 at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. 

Last five year performance: 2020 = +22.10%, 2019 = +17.34%, 2018 = -4.51%, 2017 = +22.96, 2016 = +5.26% 

The daily chart of Oracle’s share price above shows a cluster zone of technical support levels converging around the 100-period exponential moving average (the green line).  

The support zones include an ascending trend line from March to June lows, as well as the retest of a previous swing high in late May.  

These levels make the $85 to $83 a very interesting level to watch. Can buyers stage a rally here? 

While some traders may be looking for price action clues on whether buyers will turn up around these support zones, you could use the Trading Central Technical Insight Lookup indicator to help find actionable trading ideas on Oracle’s share price and thousands of other markets.  

You can find this tool in the Premium Analytics section once you log in to the Trader’s Room after opening an account.



The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following: 

  • This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.  
  • Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.  
  • With a view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for the prevention and management of conflicts of interest.  
  • The Analysis is prepared by an independent analyst, Jitan Solanki (analyst), (hereinafter “Author”) based on their personal estimations.  
  • Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.  
  • Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.  
  • Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved. 
Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.