What's Up? DOCS Might Be Soon

Shares of medical network platform Doximity are positioned for a rally, according to the charts.

Doximity (DOCS)  is an online professional networking platform that allows physicians, nurse practitioners and physician assistants to find each other and communicate without violating privacy laws. Let's check out the charts and indicators. 

In this daily bar chart of DOCS, below, we can see that prices have declined from September but some bullish divergences are encouraging. DOCS is trading below the declining 50-day and the weak 200-day moving average lines.

Trading volume has been a little "jumpy," while the On-Balance-Volume (OBV) line shows a decline from November without breaking its December and January lows. This is a bullish divergence. The Moving Average Convergence Divergence (MACD) oscillator has narrowed towards a cover shorts buy signal but also shows a bullish divergence as this indicator has not made a new low with prices. 

 

 

 

In this weekly Japanese candlestick chart of DOCS, below, we can see the candles lighting the way. A smallish hammer pattern is visible followed by a white real body for confirmation. The weekly OBV line is diverging from the price action. 

 

 

 

In this daily Point and Figure chart of DOCS, below, we can see that price reached and exceeded a downside price target of $40. 

 

 

 

Bottom line strategy: DOCS has not performed well since its initial public offering, but now it looks like share prices can rally. Aggressive traders could go long DOCS at current levels risking a close below $25 for now. A rally into the $50-$55 area is possible. 

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