Watch These Oracle Stock Price Levels as Talks With Elon Musk’s xAI End [Video]

Oracle (ORCL) shares shed 3% on Tuesday after a report from The Information said talks between the computing giant and Elon Musk’s xAI over a potential $10 billion server deal had ended. Musk later posted on X that the xAI has opted to build its own system for greater control over the speed of its completion.

Below, we use technical analysis to locate key areas on Oracle’s chart to watch out for during a potential retracement.

Oracle shares have continued to edge higher following the stock’s June 12 earnings-driven gap. However, bullish sentiment surrounding the stock looks to be tested after a bearish engulfing pattern appeared on the chart Tuesday. Typically, this two bar price formation, which features a smaller bullish candle followed by a larger bearish candle that engulfs the first, indicates slowing upward momentum and a potential reversal.

Moreover, as the stock’s price made a higher high last week, the relative …