DOCU rises to highest close since September 5, 2018
DocuSign Inc. (DOCU) Technical Analysis Report for Mar 14, 2019 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, DOCU finished Thursday at 58.85 surging $1.19 (2.06%) on high volume, strongly outperforming the S&P 500 (-0.09%). This is the biggest single-day gain in over a month. Today's close at 58.85 marks the highest recorded closing price since September 5, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 57.89, DocuSign confirmed its breakout through the prior session high after trading up to $1.25 above it intraday.
Daily Candlestick Chart (DOCU as at Mar 14, 2019):
Thursday's trading range has been $1.55 (2.69%), that's above the last trading month's daily average range of $1.26. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for DOCU.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 57.98 (now S1), which is likely to act as support going forward. The last time this happened on February 26th, DOCU gained 0.96% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 55.44.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for DocuSign. Out of 16 times, DOCU closed higher 62.50% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 68.75% with an average market move of 1.60%.