DOCU possibly forming a H&S

DocuSign, Inc.NASDAQ

Description

⋅ Oct 11, 2020 1:09 AM

NASDAQ:DOCU looks to be starting the formation of the right shoulder.
If we complete the formation, look to short under $187.
H&S invalidated when we close over $230.

Comment

⋅ Oct 15, 2020 11:02 PM

H&S invalidated and DOCU bounced off nicely on the $229.55 support line. Could see a move higher here. On watch!

Chart Patterns

Comments

RaggyToRiches

⋅ Oct 21, 2020 4:36 PM

I have a question, Abhimani. the price has since reversed since your last comment, the price broke below 10 SMA and is currently trading at 50 EMA and is below the left shoulder which is acting as resistance. Would this validate the H&S pattern?

thanks for your answer. new trader, trying to learn.

Mullamaker

⋅ Oct 21, 2020 5:55 PM

@RaggyToRiches, for the H&S to be validated, DOCU would have to close under the neck line which is at $187. If we close under there, we can see a move much lower.

RaggyToRiches

⋅ Oct 22, 2020 12:50 PM

@Abhimani, thank you. Appreciate your help.

RaggyToRiches

⋅ Oct 22, 2020 1:11 PM

@Abhimani, should both the shoulders be symmetrical?

Mullamaker

⋅ Oct 26, 2020 1:30 PM

@RaggyToRiches, preferably yes. But almost never are they perfectly symmetrical. One shoulder tends to be bigger usually.

RaggyToRiches

⋅ Oct 26, 2020 3:53 PM

@Abhimani, Thanks for the clarification. appreciate it.