Dropbox, Inc. (DBX) was down sharply in pre-market trading, apparently on the COO stepping down and an expiration of the post-IPO lock-up on insiders selling shares. Prices have since come off their lows. So the question is how do the charts and indicators look for this relatively new issue? Let's see what we can glean from the charts.
In this limited daily bar chart of DBX, below, we can see that prices were largely stable between $28 and $34 with some brief moves outside that range. Volume was heavy during the first day of trading and was quiet until the middle of June when there was a temporary spike towards $44.
Prices briefly probed the downside at the end of July but then came back to the trading range and the 50-day moving average line this month.
The 12-day price momentum study made a higher low in late July and this was a bullish divergence when compared to the price action.
In this hourly bar chart of DBX, below, we can see the sharp decline on the opening and (so far) holding at the 50-hour moving average.
The hourly On-Balance-Volume (OBV) line is amazingly bullish.
In this Point and Figure chart of DBX, below, we can see the up and down swings in price but take notice where the bulk of the activity is and this should act as support until it is broken.
Bottom line: DBX is likely to survive today and that will be impressive with the broad market under pressure this morning. There isn't enough trading history on DBX for me to feel comfortable making a recommendation but Chicken Little will have to go somewhere else.