Okta (OKTA) experienced a substantial post-earnings increase, rising over 25%, exceeding the anticipated 12% move. It reached $109.78, breaking past the $100 resistance level and approaching $110.
Key resistance levels lie between $111.35 and $115.35, with historical price points including $111.35 from March 2024, $112.08 from February 2024, and $114.50 as an upper target. Potential pullback areas may see the stock retracing to $100.75, possibly taking two to three weeks.
Future Price Expectations
Looking ahead to the next earnings report on May 29, 2025, prices could advance towards $140-$150. Current RSI readings show that Okta is in overbought territory, with historical data suggesting a careful approach if RSI nears 85.
The sharp surge in Okta’s stock price following earnings reflects a reaction stronger than predicted. With an expected move of around 12%, the actual rally of over 25% has pushed shares through a key psychological threshold at $100, now setting sights on higher resistance levels.
When we look at past price behaviour, notable areas of resistance can be identified between $111.35 and $115.35. These markers, derived from past trading activity earlier this year, highlight potential zones where selling pressure may emerge. The levels at $111.35 and $112.08, both tested in early 2024, along with $114.50 as a higher-range target, suggest a challenging path ahead. If buyers continue to drive momentum, a further breakout remains possible, but a retracement towards $100.75 should not be ruled out. Such a pullback, historically taking two to three weeks to develop, would align with previous post-earnings patterns.
Future movements will also be shaped by the upcoming earnings report set for May 29, 2025. Given recent price action, an extension upwards to the $140–$150 range remains within reason. However, momentum indicators provide an additional layer of insight. The current Relative Strength Index reading suggests overbought conditions, which typically indicate the possibility of temporary weakness. If RSI nears 85, historical trends suggest that short-term rallies may lose strength before regaining footing.
Short Term Outlook
The focus now is on short-term consolidation versus continued upside. With recent gains pushing shares towards resistance, whether bullish momentum persists or sellers begin to take profits will define price direction in the coming weeks.
