By Peet Serfontein & Khumbulani Kunene
We enter a long position with a target price of $212 and a stop-loss of $143.
Oracle Corporation is a United States (US)-based enterprise technology company specialising in database software, cloud infrastructure and business applications. The group's Oracle Cloud Infrastructure platform provides computing, storage, networking and artificial intelligence (AI) capabilities, while its Fusion and NetSuite applications support finance, human resources, supply-chain management and customer operations.
The group's range of enterprise applications and infrastructure technologies as well as hardware and services help companies worldwide improve their processes and streamline operations.
Technically, the price at the lower range of the inclining linear regression channel pattern makes the stock an attractive buying opportunity (see the first insert on the main chart). This pattern shows that the price remains within a rising long-term linear regression channel, confirming that the broader structural trend is still upward despite the recent correction.
A series of green Heikin-Ashi candles also supports the bullish case for the stock (see the second insert on the main chart). The weekly Heikin-Ashi chart confirms a bullish trend, with six consecutive green candles developing after the late-July low. This pattern indicates that selling pressure has weakened and that buyers have progressively regained control.
Progressing upside price momentum according to the Moving Average Convergence Divergence (MACD) histogram and the recent steep upward trajectory of the on-balance volume (OBV) indicator supports our bullish view.
Share performance
Share Information
| Share Code | ORCL |
| Industry | Software |
| Market Capital (USD) | 468.1 billion |
| One-Year Total Return | -31.94% |
| Return Year-to-Date | -15.81% |
| Current Price (USD) | 162.52 |
| 52-Week High (USD) | 345.72 |
| 52-Week Low (USD) | 114.50 |
| Financial Year End | May |
| The price is testing its 200-day simple moving average (SMA) and a decisive recovery as well as a sustained move above this level would suggest that buyers are regaining control and would strengthen the bullish stance. | |
Consensus expectations (Bloomberg)
| FY26 | FY27E | FY28E | FY29E | |
|---|---|---|---|---|
| Headline Earnings per Share (USD) | 7.63 | 8.07 | 10.80 | 15.65 |
| Growth (%) | 5.71 | 33.90 | 44.89 | |
| Dividend Per Share (USD) | 2.00 | 1.98 | 2.02 | 1.90 |
| Growth (%) | -0.80 | 1.56 | -5.71 | |
| Forward PE (times) | 18.40 | 13.39 | 10.39 | |
| Forward Dividend Yield (%) | 1.22 | 1.24 | 1.17 | |
| The company is set to deliver a strong earnings recovery in the current financial year and maintain the positive earnings over the medium term. | ||||
Buy/sell rationale
Technical analysis:
Fundamental view:
Update on previous trade idea
| Share Name and position | Entry | Current Price | Movement | Comment | Time to exit |
|---|---|---|---|---|---|
| TSN - (Close position) | 58.74 | 51.76 | -11.9% | Stock has hit stop-loss. Exit trade | |
| SYK - (Close position) | 329.74 | 307.99 | -6.6% | Stock has hit stop-loss. Exit trade | |
| VST - Buy (Continue to hold) | 139.03 | 151.72 | +9.1% | The price at the lower range of an inclining channel pattern remains of interest. Remains just below its 200-day SMA. Fading downside momentum is supportive. Our profit target is maintained at $176.00 with a trailing stop-loss at $144.00. | 18 November 2026 |
| Gild - Buy (Continue to hold) | 135.77 | 146.64 | +8.0% | The AI model's forecast targeted levels remain of interest. Remains above its 200-day SMA. Upside momentum halted is a concern. Our profit target is maintained at $155.00 with a trailing stop-loss at ~$143.00. | 18 November 2026 |
| PEP - Buy (Continue to hold) | 140.13 | 138.45 | -1.2% | The seasonal profile for the stock remains of interest. Remains below 200-day SMA. Fading downside momentum is supportive. Our profit target is maintained at $158.00 with a trailing stop-loss at $135.00. | 11 November 2026 |
| DOW - Buy (Continue to hold) | 30.46 | 29.57 | -2.9% | The price at a historical trading zone remains of interest. Dipped below its 200-day SMA. Fading downside momentum is supportive. Our profit target is maintained at $38.00 with a trailing stop-loss at $28.50. | 9 December 2026 |
| DD - Buy (Continue to hold) | 140.77 | 131.32 | -6.7% | The price at the start of wave 5 out of the Elliott wave price theory remains of interest. Remains below its 200-day SMA. Downside momentum is a concern. Our profit target is maintained at $170.00 with a trailing stop-loss at $123.00. | 7 October 2026 |
