DOCU earnings 12/3 at 4:05pmDocuSign provides e-signature solutions. I think this is a great product, but seeing what happened with Zoom downward price action, after hours yesterday earnings, it seems like the sentiment for these "stay at home" stocks is weakening. As today & tomorrow price action pans out, if the price goes up, it may not be indicative of the price action after DOCU earnings on Wednesday at 4:05pm and more of just sheer volume leading up to earnings. Q3 Consensus eps is $0.14 with a revenue of $360.38 Million. Do your own due diligence, your risk is 100% your responsibility. You win some or you learn some. Consider being charitable with some of your profit to help humankind. Small incremental steps work : If you double a penny for a month it = $5,368,709. Good luck and happy trading friends...
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DOCUC trade ideas
Can DocuSign continue growth in a post-pandemic economy?DOCU dropped 36% from all-time highs after it's last earnings release and has been trading between a 190 support level and 246 resistance level with most of the volume splitting the two at around 216. Earnings has consistently beat expectations and is in the triple-digit growth YoY. Sales growth has been above 34% for the last eight quarters and 45% for the most recent report. The question investors had after the last earnings is can DocuSign continue to grow or will the trend end with the pandemic.
The stock is grouped with other tech growth stocks like Zoom Video and Fastly which have been tagged as benefiting from the pandemic economy. When a viable vaccine was announced in the morning of 11/9, many of those stocks sold off in a massive rotation to Industrials, Travel and Energy stocks. However, the products and the business models for many of the "COVID stocks" are quite different. Will Zoom Video see its subscriber base go away after people can return to offices? Will social media and online content viewership decline, impacting Fastly's growth (more TikTok surprises)? And will a company like DocuSign continue to see growth after the pandemic is no longer an issue?
The digitization of contracts and esignatures are secular trends that were underway long before the pandemic hit. The pandemic has accelerated the adoption, but its unlikely that companies will go back to paper based methods after making a conversion to digital. So my view is that DocuSign would continue to see high customer retention that's been a strength of their business even before the pandemic.
The other strength that DocuSign has is upselling their full product suite to existing customers. You can imagine that many of the customer adds during the pandemic were to solve an immediate problem. Customers came for electronic signatures so they could continue to do business while lockdowns were in place. Now as DocuSign retains those customers, it also has the opportunity to put their upsell muscle to work.
It's always a gamble heading into earnings which is nine days away, but I'd consider a small position or an option if this could clear the current pivot high at 226.39 in the next 1.5 days of trading.
Current 10d ATR (x2.7) stop is at 9.79%.
Position size of R10.22 but would start with a smaller R due to earnings. And/or sell before earnings.
Buy Point: 226.39
Stop Loss: 204.23 (9.79%)
Position Size: R10.22
DOCU - November 19, 2020DOCU has been super volatile in the past 3 months. It has had failed breakouts and retest of the lows. I think if DOCU dips to the 195-200 level it is a great buy. Earnings are coming up on December 4th, and DOCU had an absolute parabolic run up into last quarters earnings. Potential for this to repeat itself leading into Q4 but looking for a good RR setup on the play.
200 MA at interesting spot nowI had a line drawn from the pre-covid high of DOCU which was reached on Feb 19. I have kept it as a small grey line because I didn't see DOCU testing it in the near future.
Interestingly, the line now sits exactly at the 200 MA. DOCU has previously tested the 200 MA during the March crash. There is room to drop to the 160-170 range.
I do feel the stock has some gas left at least until end of the year. But it could test that grey line closer to Jan/Feb I think.
Watching closely.
Fib channel gives path to 255Taking a different approach with this one and seeing how accurate the fib channel will prove to be. Whether a fib channel or not, price has been traveling in this channel with some exceptions bottoming out or breaking out. Overlaying volume profile indicates its about to find a base over 228-230 and may make its next move from there.
Docus already b4 Elliott Wave 3, abc limted by ConfluenceLooking on the chart in 1D, the leg down appears like an "a", so Docusign still could be in correction mode.
But the orange line is the highest Confluence Zone (for 1D), with its typical power to catch corrections from falling down
to regular exytensions. (As described in my confluence script) .
If you switch to 2h, you see that most of the downswing from 5 is an "a", probably of a zig zag - and the c wave is caught and chopped by the orange line.
So i guess that to 85% likeliness, the stock is already at the end of 2 - ready for 3, the next impulse up.
DOCU, Aroon Indicator entered an Uptrend on October 20, 2020Over the last three days, Tickeron A.I.dvisor has detected that DOCU's AroonUp green line (see chart) is above 70, while the AroonDown red line is below 30. When the green line goes above 70 while the red line stays below 30, this is an indicator that the stock could be poised for a strong Uptrend. For traders, this could mean going long the stock or exploring call options in the next month. Tickeron A.I.dvisor backtested this indicator and found 198 similar cases, 177 of which were successful. Based on this data, the odds of success are 89%. Current price $219.71 is above $215.68 the highest resistance line found by Tickeron A.I. Throughout the month of 09/18/20 - 10/20/20, the price experienced a +17% Uptrend, while the week of 10/13/20 - 10/20/20 shows a -4% Downtrend.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 25, 2020. You may want to consider a long position or call options on DOCU as a result. Tickeron A.I. detected that in 24 of 35 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 69%.
The Moving Average Convergence Divergence (MACD) for DOCU just turned positive on September 28, 2020. Looking at past instances where DOCU's MACD turned positive, the stock continued to rise, Tickeron A.I. shows that in 20 of 25 cases over the following month. The odds of a continued upward trend are 80%.
DOCU moved above its 50-day Moving Average on September 25, 2020 date and that indicates a change from a downward trend to an upward trend.
The 10-day Moving Average for DOCU crossed bullishly above the 50-day moving average on October 02, 2020. This indicates that the trend has shifted higher and could be considered a buy signal. Tickeron A.I. detected that in 5 of 8 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 63%.
Following a +5.59% 3-day Advance, the price is estimated to grow further. Considering data from situations where DOCU advanced for three days, in 143 of 164 cases, the price rose further within the following month. The odds of a continued upward trend are 87%.