From a macro perspective you can see it's playing around the 2.05$ support level and coming up on the 200 EMA. Will need to watch closely next week to see if it bounces back or dips below and goes bearish.
From a micro perspective it heavily looks like a falling knife. With the March 5th crash it dipped then recovered, but currently continues to fall. It's also fallen below the EMA and the support level here. Without any news catalysts, I'm expecting it to continue to fall and test the 1.85$ support. Might start nibbling there. If it bounces off we're looking good, if it keeps falling it could likely keep falling until either news or how the next earnings report goes on May 17th.
Going to keep a close eye on this one in the following weeks, still am bullish on this company and telehealth long term however with the flimsy financials and insider sell-offs public sentiment is not on DOC's side right now. Be careful with this one and don't cut your hands trying to catch the knife! Wait for a solid bottom out.
This is my first posted analysis so any feedback or other perspectives is welcome.
Much better analysis than most of the ideas I've seen on this site. I appreciate the attention to details like the insider selling and agree with every point you made. I think we are heading under $2 temporarily as well. Well done.
notAStockGuy
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How do we check for the solid bottom out? Are there any indicators we can look for that the share price is converging towards a possible lowest value?
njedi007
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@notAStockGuy, something I'm trying to understand. Today looks like its bouncing off $1.70, but don't think that would be considered solid support.
notAStockGuy
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@njedi007, yeah it looks more like the bottom point for today. But from a yearly perspective, this is the lowest point since September last year. I am not sure if it will test support levels from that period or find a new one. By the looks of it though, it skyrocketed today everytime it hit $1.70 so that might be a resistance to check over the coming week?
njedi007
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@notAStockGuy, Yes good catch on the longer timeframe, I think that does say something if it hasn't been this low since Sept and it also bounced from that point. Looking at the same longer timeframe I notice that it got down to about $1.57 so it could dip down to that range as well. I'm currently at $2.20 so would actually be happy if it dropped a bit more as I would be glad to average down. Either way I'm in long term for now.
notAStockGuy
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@njedi007, Yeah it turns out $1.70 could be the bottom point, testing support there and awaiting recovery.
njedi007
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@notAStockGuy, Yup! Been watching all morning to see if it would break $1.70, and its been moving up nicely and testing the resistance at $1.80. LETS GO!!!
notAStockGuy
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@njedi007, Good catch man, I got in at resistance line and it was a good move! Now if I could figure out what is going on with my other stocks I can definitely have a good week.
njedi007
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@notAStockGuy, Tell me about it , I've been on the GME roller-coaster as well. Holding at $147, glad I didn't sell yesterday as it recovered nicely today just like DOC!
notAStockGuy
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@njedi007, Yeah we just have to ride the support wave for as long as we can!