Oracle Corp ( ORCL ) shares are getting hit Wednesday morning following reports that one of its partners is backing out of a massive data center deal.

Oracle stock is facing resistance. What’s pulling ORCL shares down?

What To Know: The Financial Times reported on Wednesday that Blue Owl Capital, Oracle’s biggest data center partner, has decided not to support a $10 billion deal for its next planned data center for OpenAI.

The news comes as Oracle faces increased concerns over mounting debt and massive AI spending. People familiar with the matter reportedly said Oracle is yet to find someone to take Blue Owl’s place in backing the planned facility.

Oracle stock has been trending lower since reporting mixed financial results for the second quarter last week. Quarterly revenue of $16.06 billion missed analyst estimates of $16.21 billion, reigniting concerns about the company’s increased AI spending. Investors appear to be concerned the software giant will struggle to repay the debt it is taking on if AI demand doesn’t meet expectations.

ORCL Analysis: Oracle is facing bearish pressure as it trades significantly below its key moving averages, currently 12.3% below its 20-day SMA, 25.5% below its 50-day SMA and 28.6% below its 100-day SMA, indicating a challenging technical environment for traders.

The RSI is currently at 32.48, which suggests the stock is in neutral territory but flirting with oversold conditions. This level indicates that there could be potential for a bounce if buying interest returns, but traders should remain cautious. MACD is below its signal line, indicating bearish momentum in the short term.

Key support is at $154.50, while resistance is at $216.50. If the stock tests support and holds, it could signal a potential reversal, but a break below could lead to further declines.

Traders should watch for potential rebounds near support levels, but the bearish indicators suggest caution in the near term. The technical setup indicates that without a strong reversal, the stock may continue to face downward pressure.

ORCL Price Action: Oracle shares were down 4.74% at $179.70 at the time of publication on Wednesday, according to Benzinga Pro.

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