Jim Cramer makes note of DocuSign ( DOCU) in his Real Money column as one of the stocks seemingly made for the pandemic.
Let's go back to the drawing board.
In this updated daily bar chart of DOCU, below, we can see that prices traded back up above the 50-day and 200-day moving average lines but recently slipped back below. Trading volume has been on the light side and the On-Balance-Volume (OBV) line moved up from late March into April. Recently the OBV line has edged a little lower.
The Moving Average Convergence Divergence (MACD) oscillator is crossing back above the zero line for a buy signal. We will see how long that signal lasts.
In this weekly Japanese candlestick chart of DOCU, below, we see a mixed picture. Prices traded above the 40-week moving average line and back to it. With three days left in the week we could see prices improve from here.
The weekly OBV line shows weakness in February and March, and improvement in April. The MACD oscillator turned lower back in August but the oscillator has been narrowing towards possibly a new buy signal.
In this daily Point and Figure chart of DOCU, below, we see an upside price target of $243.
In this weekly Point and Figure chart of DOCU, below, we now see a possible $315 price target. A big difference from our chart on March 30 when the projection was for a decline to $104.
Bottom line strategy: I cannot declare that the charts of DOCU are totally out of the woods but they certainly show improvement from the end of March. There is knowledge from a forecast that does not materialize and for DOCU it is good news so far.
