We checked out the charts of DocuSign (DOCU) just a few days ago on Nov. 29 and advised readers that "The charts of DOCU have weakened since our August review. Further declines are possible. Avoid the long side for now."
DOCU gapped sharply lower Friday after the company's latest earnings report so let's run through the charts again.
In the daily bar chart of DOCU, below, you have to look closely at the lower right hand side of the chart to see Friday's entry. The shares plunged with a capital "P" and trading volume surged. The moving averages are still pointed down, of course.
The On-Balance-Volume (OBV) line is weak and so is the Moving Average Convergence Divergence (MACD) oscillator.