DocuSign Inc. (DOCU) is expected to report earnings this Thursday after the market closes. The report will be for the fiscal quarter ending July 2020. The stock appears to be surging higher Tuesday on the heels of its work-from-home peer Zoom (ZM) blasting higher after its earnings release.
Let's check out the charts. 
In this daily bar chart of DOCU, below, we can see that prices are up about four-fold in the past 12 months. Prices are above the rising 50-day moving average line and the rising 200-day moving average line. I would consider DOCU extended or overbought vs. the 200-day line. The On-Balance-Volume (OBV) line has moved up with the price action from March and its new high helps to confirm and support the price increase. The Moving Average Convergence Divergence (MACD) oscillator was correcting the past two months but we can see that it is crossing to the upside now to a fresh outright-buy signal.
In this weekly bar chart of DOCU, below, we can see that prices made a large base pattern in the $45 area in 2018 and 2019 that can support a longer-term advance. Prices are above the rising 40-week moving average line. The weekly OBV line has been bullish, but has stalled in the past two months even as prices have surged higher. The trend-following MACD oscillator has narrowed in the past month suggesting that the power of the uptrend has weakened a bit in recent weeks.
In this Point and Figure chart of DOCU, below, we can see that prices have reached and exceeded a $256 price target. Prices need to consolidate these recent gains.
Bottom line strategy: The at-home economy seems to be booming and the price of DOCU has been soaring. Prices need to "catch their breath" and consolidate some of the recent price gains. I would look for some sideways price action and keep in mind that the upcoming earnings report needs to deliver. Longs should risk a close below $225 now.
