Technology stocks have been a drag on the major indexes since late October, particularly the megacaps and AI-related stocks. One of the biggest losers from the rotation out of technology was Oracle (ORCL) , which is now oversold from an intermediate-term perspective after a peak-to-trough decline of almost 50%. We are intrigued by the setup, noting ORCL has stabilized near long-term support from the weekly cloud model, which spans from $190 to $195. This is a key support zone because it defines the cyclical uptrend off the 2022 low. The weekly stochastics are turning up in oversold territory ( < 20%), and the weekly MACD histogram has ticked higher for four consecutive weeks, which increases the likelihood that a tradable low has been established. From a short-term perspective, ORCL has a bullish divergence in its daily MACD, which made a higher low in December as price made a lower low. The setup reflects improved short-term momentum, supporting a relief rally in the near term. An initial hurdle is the 50-day moving average (MA), currently near $210 and declining over time. A breakout above the 50-day would target a Fibonacci retracement level near $242, which is 22% above current levels. A breakout in ORCL would likely foster substantial outperformance, with ORCL deeply oversold relative to the S & P 500 Index (SPX) after a sharp phase of underperformance in Q4. The oversold relative condition is enhanced by the DeMARK Indicators®, denoted by the blue “9” on the chart. Previous buy signals from this model led to meaningful periods of outperformance versus the SPX. The improvement on ORCL’s chart, both in absolute and relative terms, suggests that traders should take a bullish stance with a timeframe of 6-8 weeks. The long-term setup has deteriorated, however, so we would look for a lower high to develop versus the 2025 high. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: None. 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