Oracle Corporation (ORCL) is having a rough Monday, capping off what's been an absolutely brutal two months. The stock has shed more than 40% since late September, leaving investors wondering if there's any floor beneath them.
But here's the interesting part: Oracle might have finally found that floor.
Let's talk about what actually moves stock prices. It's pretty simple when you break it down—supply and demand. When more people want to sell than buy, prices fall. When sellers flood the market and there aren't enough buyers willing to catch those falling shares, well, you get exactly what happened to Oracle starting in late September.
The selling pressure created a snowball effect. Traders and investors desperate to exit had to keep offering their shares at lower and lower prices just to find buyers. Each price cut attracted more sellers, and down the stock went through October and into late November.
Why the Bleeding Might Stop
Selloffs don't last forever, though. They typically pause or reverse when stocks hit support levels—price points where enough buyers step in to absorb all the selling. At support, traders stop undercutting each other because demand finally catches up with supply.
For Oracle, that support appears to be sitting around $191.
This isn't random. The $191 level matters because it was resistance earlier this year. Back in January, Oracle couldn't break above this price—until it finally did in June, sending the stock higher. And here's where market psychology gets interesting.
Some traders who sold around $191 in January probably kicked themselves when the stock broke through resistance and kept climbing. Many of them likely thought, "If I ever get another chance to buy at my old selling price, I'm taking it."
Now that Oracle has tumbled back to $191, those regretful sellers are becoming buyers. Enough of them are placing buy orders at this level that it's created meaningful support.
What Comes Next
Traders are now watching for a potential bounce. When stocks stabilize at support, reversals often happen because impatient buyers start bidding prices higher. Nobody wants to miss the turn, so they become willing to pay a bit more to get in. That competitive buying can spark an uptrend.
Whether that happens with Oracle remains to be seen, but the technical setup is there. After a 40% haircut, the stock is testing a level where buyers have historically shown up. If they do it again, we might be looking at the beginning of a recovery rather than just another pause in the decline.