TradingKey - On September 29 ET, Oracle (ORCL) shares rose 5%, reclaiming the $140 mark. Oracle and intelligent data infrastructure provider NetApp announced plans to launch the OCI NetApp Storage service, natively bringing NetApp ONTAP's data management capabilities to Oracle Cloud Infrastructure (OCI). This fully managed service is expected to become generally available within the next 12 months.

The new service targets scenarios such as databases, enterprise applications, virtualized environments, electronic design automation, high-performance computing, highly regulated businesses, and AI data pipelines. Enterprises can manage storage resources via the OCI console, software development kits, ONTAP interfaces, and existing operational workflows. For customers already using ONTAP, this means migrating to OCI could potentially reduce the need for application refactoring and adjustments to storage management approaches.

Pravjit Tiwana, head of NetApp Cloud Storage and Services, stated that customers want to migrate AI and enterprise workloads to the cloud while retaining capabilities such as data protection, compliance governance, and multiprotocol access. Konstantinos Papamiltiadis, head of Oracle Cloud Infrastructure Partnerships, also noted that enterprises migrating to the cloud do not need to rebuild their entire data infrastructure.

This partnership expands OCI's storage options for core enterprise operations, particularly for industries with stringent data management requirements. However, the service is not yet generally available, and neither company disclosed commercial terms or expected revenue contributions. Its actual impact on Oracle's financial performance will ultimately depend on the rollout progress and customer adoption rate.

Oracle stock price chart, Source: TradingView

Oracle shares bounced back sharply from a low of $132.53, reclaiming the 0.618 Fibonacci retracement level ($135.90). However, the stock remains below its 5-day moving average ($141.98), 10-day moving average ($146.16), 20-day moving average ($144.52), 80-day moving average ($151.20), and 160-day moving average, and has yet to recover the 0.5 Fibonacci retracement level ($142.61). The current movement represents a technical bounce following a sharp decline, rather than confirmation of a trend reversal.

Currently, the moving averages have turned into clear overhead bearish resistance. The current price has only reclaimed the 0.618 Fibonacci retracement level and has not yet climbed back above the 5-day and 20-day moving averages. Only if the stock reclaims the 0.5 Fibonacci retracement level ($142.61) and stabilizes above the 20-day moving average ($144.52) will the rebound have a chance to extend toward the $149.24 to $151.20 range. If it falls back below $135.90, this technical bounce will be considered a failure.

The primary risk is a renewed loss of the 0.618 Fibonacci retracement level ($135.90). Should the rebound fail to hold this level, the price could test the 0.786 Fibonacci retracement level ($126.53) and, under weaker conditions, fall further toward around $114.50.

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