Oracle stock tests $135.74 support as layoffs to manage debt from AI investment

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Oracle drops 4.7% today to $143.24

Highlights

Oracle initiated new layoffs and is addressing creditor concerns as it manages increased debt from AI infrastructure investments.
Larry Ellison canceled a plan to sell up to $7.5 billion in Oracle stock, with no shares sold under the plan.
Shares of Oracle are under sustained selling pressure, trading well below major moving averages with downside momentum and an expected range of $135.74 to $150.74.

Layoffs and canceled stock sale as financial discipline tightens

Oracle Corporation has initiated a new round of layoffs as part of its strategy to manage higher debt levels tied to recent AI infrastructure investments, according to Businessinsider. This move is intended to reduce operating expenses and address creditor concerns regarding leverage. Additionally, Larry Ellison, the company’s co-founder and chairman, canceled a previously disclosed plan to sell up to $7.5 billion in Oracle stock, with Techcrunch reporting that no shares were sold under this plan. Taken together, these actions reflect management’s focus on financial discipline, though price action has remained under broader selling pressure.

Bearish technicals deepen as multiple indicators signal oversold conditions

On the technical front, ORCL/USD is trading below the MA-20 at $156.11 and MA-50 at $156 on the hourly chart, and it remains well beneath the long-term MA-200 at $167.63. The Ichimoku Kijun level at $157.89 serves as a critical near-term resistance line, further capping rebound attempts. Momentum indicators are deeply negative: MACD and ADX both show persistent downside pressure, RSI is at 38.2 with a clear Sell reading, and both Stoch RSI and CCI are firmly in oversold territory. Bull/Bear Power highlights strong seller dominance for intraday price action, and the Awesome Oscillator reinforces the prevailing bearish momentum.

Downside risk prevails as reversal chances remain limited

Over the next several sessions, the expected trading range for ORCL is $135.74 to $150.74. A further decline remains much more likely than a reversal, as the likelihood of a sustained move higher is low. In the baseline scenario, price action could drift sideways within this volatility band. A bullish shift would require a rally above the $157.89 resistance level, while renewed bearish momentum could see the price fall below $135.74 support.

Viktoras Karapetjanc, expert at Traders Union, sees Oracle’s management actions as a clear move to shore up its balance sheet amid increased AI spending. He notes that the canceled insider sale and new cost-cutting should help improve sentiment over time, despite the current price weakness. The technical and sentiment backdrop remains negative for now, but structural changes signal a foundation for future recovery. "If Oracle holds key support and execution on debt reduction continues, I expect confidence to rebuild swiftly."

Earlier, analysts noted that Oracle was expected to remain in a period of price consolidation, with technical signals and strong backlog pointing to a wait-and-see approach ahead of earnings. The current analysis deepens this view, as persistent downside momentum and recent cost-cutting actions suggest traders should closely monitor the $135.74 support for potential further declines.

Source of Data: ORCL Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.