OKTA stock surges almost 25% after earnings (double its expected move) | Forexlive

A Rare Earnings Blast-Off

Okta (OKTA) delivered a massive earnings-driven move, soaring well above expectations. The implied move was 12%, but the stock surged over double that—a rare occurrence when options are already pricing a double-digit move. Not only did OKTA shatter expectations during regular trading hours, but it also continued climbing in after-hours, hitting $109.78.

Key Technical Breakout & Price Magnets

On this weekly chart, OKTA has decisively cleared the key $100 round number and is pushing toward $110, a critical psychological level. The area between $111.35 and $115.35 is packed with historical price levels acting as both resistance and magnets, including:

• $111.35 – High from March 4, 2024, and May 31, 2022
• $112.08 – High from February 26, 2024
• $114.50 – A key upper target

Given the strong momentum, $111.35 – $114.50 is likely to be reached soon. The stock is breaking out of a sideways channel, which had multiple touchpoints, with the fourth touch leading to the breakout—a classic technical pattern.

Potential Pullback & Retest Areas

While OKTA may continue higher, a pullback and retest of the breakout zone remains a possibility. The $100.75 level aligns with a potential retest of the broken channel and the $100 round number. If a pullback does occur, it may take at least two to three weeks, offering an opportunity for traders looking to enter on weakness.

Big-Picture Target: $140 – $150 by May Earnings?

With its next earnings report on May 29, 2025, OKTA has the potential to sustain its rally toward the $140 – $150 zone. If fundamental strength continues to drive technical momentum, the stock could even challenge the upper channel boundary and eventually work its way toward the $294 all-time high—though that would require continued fundamental strength (to be seen on its next earnings report?).

RSI & Momentum Considerations

• OKTA’s weekly RSI has entered overbought territory—a level that previously led to a 38% decline over 250 days after the March 4, 2024 high.
• However, historical data shows that OKTA can also hold above RSI 70 for extended periods, as seen in 2018, 2019, and 2020.
• In May 2018, RSI hit 84.76, proving that a high RSI alone does not guarantee an imminent pullback. Still, if in the future, it gets to an RSI of apx. 85, then I would be careful and watch other angles of the picture, as it may need to rest
• Key Watch: If bearish divergences form in the coming weeks, it could signal a cooling-off period—but so far, momentum remains strong dspite the high RSI.

Final Thoughts – A Powerful Setup

OKTA is demonstrating technical strength post-earnings, and the breakout above $100 suggests further upside potential. While short-term traders may watch for a pullback near $101.75, long-term momentum traders might eye a move toward $140 – $150 into the next earnings cycle.

This is not financial advice—always consider multiple timeframes and your own strategy before making decisions. If you’re looking for pullback zones, you may want to analyze shorter-term charts for more precision.

This was today’s Chart of the Day. Go OKTA! 🚀