On December 22 I wrote about Hologic (HOLX) and Duck Creek Technologies (DCT) as my two stock picks for 2021. Traders should have been able to buy the early 2021 dip in DCT to $40 as per our recommendation. Prices have climbed to the $58 area so a check of the charts in order.
In this daily bar chart of DCT, below, we can see that prices have been strong since early January. Prices are above the rising 20-day and 50-day moving average lines. The daily On-Balance-Volume (OBV) line shows strength from early November and the Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this Point and Figure chart of DCT, below, we can see a potential price target in the $60 area.
Bottom line strategy: I will assume that traders went long DCT in early January when it dipped to $40. A sell stop at $49 seems like a good location. $60 is our Point and Figure target so far.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
Be careful as we could see a retest of the June low in the weeks ahead.
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
Email sent
Thank you, your email to has been sent successfully.
