• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

DocuSign Will Likely Work Its Way Lower After a Bounce

The course of least resistance for DOCU looks to be lower.
By BRUCE KAMICH
Sep 22, 2020 | 02:30 PM EDT
Stocks quotes in this article: DOCU

In his No-Huddle Offense segment of Mad Money, Jim Cramer told viewers Monday evening as the weather is getting colder and Covid-19 cases in the U.K. and Spain are climbing, it looks like we're right back where we started, with investors buying up the Covid stocks. Real estate remains hot, and that's good news for DocuSign (DOCU) , added Cramer. 

Let's check out the charts of DOCU. 

In the daily bar chart of DOCU, below, we can see some weakness has developed. It looks like DOCU has just broken the August lows and we could see further downside testing of the July lows. Prices are below the declining 50-day moving average line.

Trading volume has been heavy this month and the On-Balance-Volume (OBV) line has turned sharply lower signaling a shift from aggressive buying to aggressive selling. The Moving Average Convergence Divergence (MACD) oscillator has crossed below the zero line for an outright sell signal.

 
 
In the weekly Japanese candlestick of DOCU, below, we can see some bearish clues. There is a large upper shadow last month showing how traders rejected the highs. The 40-week moving average line is rising but this is a lagging indicator.
 
The weekly OBV line shows weakness from late August and may be the start of a turn lower. The MACD oscillator has crossed to the downside for a take profits sell signal. 
 
 
 
In this daily Point and Figure chart of DOCU, below, we can see an upside price target in the $249 area. 
 
In this weekly Point and Figure chart of DOCU, below, it is projecting the $85 area as a potential downside target. 
 
 
 
 
Bottom-line strategy: DOCU could make an upside bounce but with several negative signals or clues the course of least resistance for DOCU could be lower. 
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Real Estate | Investing | Stocks | Technical Analysis | E-Commerce | Mad Money | Coronavirus

More from Stocks

A Rush to Rotate Into Short-Squeeze Plays Is Roiling the Market

James "Rev Shark" DePorre
Jan 28, 2021 6:27 AM EST

The market is struggling with instability as a massive, short-squeeze movement continues. 'Good' stocks are being dumped by funds to pay for short-selling losses.

If You Think the Selling Started Yesterday, You Have a Short Memory

Helene Meisler
Jan 28, 2021 6:00 AM EST

A lot of what we saw on Wednesday has been in the works for a while now.

Emotions Run High as Indexes Slip

James "Rev Shark" DePorre
Jan 27, 2021 4:44 PM EST

I've raised a bit of cash, but it's still unclear what will emerge from here.

3 Important Questions the Fed Answered Wednesday

Tom Graff
Jan 27, 2021 4:30 PM EST

Powell was asked a number of questions about asset bubbles and financial stability risks during his press conference.

'Mortal Kombat' on the Market

Peter Tchir
Jan 27, 2021 3:54 PM EST

Let's pick apart the wild action in individual stocks -- especially GameStop -- and see what to expect going forward.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 06:43 AM EST BOB LANG

    Webinar Time -- After the Close today

    join me later today as we talk about markets and w...
  • 11:48 AM EST STEPHEN GUILFOYLE

    Cashing in Some More Chips at Stocks Under $10

    We're trimming a position for a big gain today.
  • 08:34 AM EST GARY BERMAN

    Wednesday Morning Fibocall for 1/27/2021

    The "correction" can be coming sooner than we thou...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login