On the topic of their business in a pandemic, Springer said clients are discovering more than ever that online signatures are faster, more convenient and cost less than in-person alternatives. That's why DocuSign continues to invest in identity and notary services, to remove the in-person elements from more and more transactions.
DocuSign is also helping governments across the country better manage their digital processes. The digital trend is here to stay, Springer said, and the pandemic has only pulled that trend forward in a big way.
Let's check out the "old school" charts and indicators of DOCU.
In this daily bar chart of DOCU, below, we can see that prices have been trending higher since August. DOCU is well above the rising 50-day moving average line and the rising 200-day moving average line. The decline from February into March was relatively shallow especially when compared to the broad market and many individual stocks that were crushed. Trading volume has been more active since March telling us that DocuSign's story has reached more investors.
The On-Balance-Volume (OBV) line has been trending higher since early September telling us that buyers of DOCU have been more aggressive for several months. The rising OBV line helps to confirm the price gains.
The Moving Average Convergence Divergence (MACD) oscillator is well above the zero line which is positive but it has crossed to a take profits sell signal.
In this weekly bar chart of DOCU, below, we can see that prices made a long base pattern in the $50 area. Prices have tripled from the base area so the next price objective would be a four-fold increase to the $200 area.
Prices are above and maybe too far above the rising 40-week moving average line.
The weekly OBV line has been strong the past three years and the MACD oscillator in this longer time frame is very bullish.
In this first Point and Figure chart of DOCU, below, we used daily price data and here we can see that prices have reached and exceeded a $140 price target.
In this second Point and Figure chart of DOCU, below, we used weekly price data and here there is a projection to the $161 area. Not all that much higher from current levels.
Bottom line strategy: Existing longs of DOCU and traders looking to go long or add to longs should now risk a close below $128. The $161 area and then the round number of $200 are our price objectives.