Stock Of The Day: Has Oracle Reached A Bottom?

Core Viewpoint - Oracle Corporation has experienced a significant decline of over 40% in two months, but it may have reached a bottom, indicating a potential reversal and upward movement in stock price [1]. Supply and Demand Dynamics - The stock market is driven by supply and demand; when supply exceeds demand, prices fall [1]. - In late September, sellers dominated the market for Oracle, leading to insufficient demand to absorb the sell orders, which caused the stock price to decline [1][3]. Selloff and Support Levels - The selloff continued until late November, with traders forced to sell shares at discounted prices to attract buyers, creating a snowball effect that further pushed the stock down [3]. - Selloffs typically pause or end at support levels, where there is enough demand to absorb sell orders, preventing further price declines [3]. Historical Resistance and Current Support - Oracle has established support around $191, a level that previously acted as resistance in January, illustrating a common market dynamic where prior resistance can become support [4]. - Many sellers around the $191 mark regretted their decision when the price broke through resistance in June, leading them to place buy orders when the stock returned to this level [4][5]. Potential for Rally - The influx of buy orders from remorseful sellers at the $191 support level has created a foundation for potential upward movement [5]. - Traders are closely monitoring Oracle for signs of a rally, as impatient buyers may start to outbid each other, driving the stock into an uptrend [5].