This “Operation Stargate” Stock Won’t Be on Sale for Long VIEW IN BROWSER BY LUCAS DOWNEY, EDITOR, TRADESMITH’S ALPHA SIGNALS Last week’s market action was enough to drive many traders to the sidelines, waiting for the coast to clear. But when the S&P 500 drops 1.6%, and the tech-heavy NASDAQ flops 3.1%… Is that a rough week? Or a gift to investors? The key is to recognize when top-tier stocks are being unfairly punished… as those will be the ones to bounce back once the volatility vanishes. Today we’ll isolate one top AI play that’s flashing not one, but two, bullish signals we’ve been waiting months to see. The company in our crosshairs is Oracle Corp. (ORCL), one of the few firms that offer enough cloud infrastructure to bring AI to hyperscale. If you’re hunting for a high-quality stock that’s oversold… today’s article is just for you. | Recommended Link | | | | A former hedge fund manager known for spotting early winners is sounding the alarm once again. He called Netflix at $7.78 (up 4,200% since), Apple at $0.35 (up 20,000%), and Amazon at a split-adjust $2.41 (up 3,200%). Now he’s turning his focus to a little-known AI company that just earned a near-perfect score in his new proprietary stock grading system. In a brand-new presentation, he reveals the name, ticker symbol, and why this could be the smartest AI move of the year… especially if you’re over 50. Click here to watch it before word gets out. |  | | Two Oversold Signals are Flashing for Oracle Oracle has been in the limelight all year alongside OpenAI. During January’s briefing on “Project Stargate” to build AI infrastructure in the United States, we saw Oracle’s founder, Larry Ellison, up on the podium next to President Trump. This proves how the data giant is integral for one of the highest priorities in the nation: artificial intelligence. This has helped Oracle shares to soar 44% YTD. However, shares have fallen hard recently – 27% in two months: 
Normally, weakness could be explained by poor forward expectations for a company. But that’s definitely not the case for ORCL. The company is crushing it on top-line and bottom-line metrics: - Sales reached $57.4 billion in FY 2025. Analysts expect 2026 revenues to accelerate to $67 billion and boom to $83.5 billion in FY 2027. This is huge growth for a $700 billion market cap firm.
- And earnings are just as healthy with 2025 net income reaching $12.4 billion with 2026 estimated to clock in at $19.95 billion.
That’s all-star growth. But the technical picture is what makes now the time to strike… Our first signal study unpacks the fact that ORCL shares did fall 27% in the last two months. I tested how rare that down move is and what tends to follow. The results may shock you. Since 1988, ORCL shares have fallen 27% or more over 42 trading days just 308 times. Here’s the signal. One month later, ORCL shares pop 3.2%. Two months later, ORCL shares jump 11.4% Note the 75% positivity rate at the two-month mark: 
Those are pretty good odds if you ask me. But the other reason to get excited starts with Oracle’s Relative Strength Index (RSI) reading. Just last week, ORCL’s 14-day RSI reading plummeted to below 33. That’s the weakest reading since the April lows: 
I was curious about how rare this low of a reading is. Over the past 20 years, I found 192 instances when ORCL’s RSI was below 33. Here’s the signal of why you should be long-term bullish on this tech giant from here. Since 2005, an RSI reading below 33 has indicated big forward returns with: - Three-month gains of 9.7%
- Six-month gains of 17.4%
- 12-month gains of 31.5%
- 24-month gains of 58.8%
And notice how high the hit rate is for this oversold signal. A year later, Oracle shares were higher 96% of the time… and two years later sees all prior instances as positive: 
The market pullback is offering traders a gift. One of the top AI plays in the market is heavily oversold. My bet is the for-sale sign won’t be up for long. And as you’ll notice, the stock gets a fundamental Score of 85 in Jason Bodner’s Quantum Edge system. That is elite territory. The technical score is where the weakness is at 59.1. But if my signal studies above are any indication, it won’t last long: 
There you have it. You don’t need to be an oracle to find amazing opportunities. Just remember: The latest market-wide dip is a gift when you know where to hunt. Anytime major indices fall, pressure spreads to drag down both good and bad companies. When that happens, it’d be a mistake to let the good ones slip through your fingers. All you have to do is study history – use TradeSmith software to see which “titans of industry” are in the buy zone now – and make evidence-based trades. That’s a winning strategy for market pullbacks like this. Regards, 
Lucas Downey
Editor, TradeSmith’s Alpha Signals (Disclosure: Lucas Downey holds a long position in ORCL in a managed account.) | 
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