We wrote about DBX the other week looking for a decline to $18 but that forecast is running ahead of schedule. Keeping this new quantitative downgrade in mind, let's look at the charts again.
In this daily bar chart chart of DBX, below, we can see how prices have broken the April and May lows and also the December nadir. Prices are below the declining 50-day average line and the bearish 200-day line. The On-Balance-Volume (OBV) line peaked in July and continues to weaken, telling us that sellers of DBX have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is bearish as it "free falls" below the zero line.
In this weekly Japanese candlestick chart, below, we can see that prices are below the declining 40-week moving average line. The candle pattern, or bar, is bearish as prices started the week near its high and it is trading near its low. The weekly OBV line has turned down and the MACD oscillator is crossing to a new sell-signal.
In this updated Point and Figure chart of DBX, below, we can see that the software has generated a new, more bearish, price target of $11.75.
Bottom line strategy: DBX could bounce in the short-run, but the charts and indicators now suggest it could decline to around $12 after reaching our $18 target.