Top technician says charts point to a rally for classic tech stock Oracle

As the tech wreck rages on, one top technician says Oracle could rise above the carnage.

The classic cloud stock has had a turbulent year and is now down around 8 percent from its all-time closing high of $52.97 in March. However, Carter Worth, head of technical analysis at Cornerstone Macro, says there's something in the charts suggesting the stock could be poised for a breakout ahead.

October was a catastrophic month for the major indexes, with tech leading the slide lower. Yet Worth notes that Oracle's ability to withstand the selling pressure could be indicative of bullish activity ahead.

"[Oracle is] showing a key thing it's holding up when others are under pressure," he said Friday on CNBC's "Options Action." "People were selling everything but they sold a little less of this and that's the definition of relative strength."

Worth also noted that despite the stock's failure to perform relative to the broader tech sector over the long term, history has shown that after significant pullbacks the name has successfully rallied higher.

"What has happened three or four times is that when this starts to improve ... you then get both absolute and relative performance," he said.

Despite Oracle's volatile performance this year, the stock is still up more 43 percent since 2016. Worth's charting reveals that within that time frame it's begun to form a bullish technical wedge formation, suggesting the stock could be poised to break up toward the $50 level.

"The hunch is that we're going to get a pretty good move out of this formation. I think this sets up for the breakout absolute and I like the developmental action on a relative. Oracle here I want to be long," Worth said.

Shares of Oracle were lower Monday afternoon at around $48.75.

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