Doximity is bucking the trend $DOCS – September 6, 2024
This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. After the price action we saw today in the overall Market, I wouldn’t be surprised if you need a break from the Market.
I do want you to stay locked in because volatile downside days like today can actually bring up a lot of stocks that have high relative strength. We teach our members to watch out for stocks that go up when the rest of the Market is going down. Doximity ( NYSE: DOCS ) is one of those stocks.
In the short-term, we see Doximity ( NYSE: DOCS ) in and around its 8-day exponential period moving average, that’s the orange line here on the chart. We can see the stock actually went up today. That’s the first signal of high relative strength, especially on a day like today when most of the Market was in the red.
If I zoom out here, we can see Doximity ( NYSE: DOCS ) keeps bumping up against a pretty clear long-term resistance zone right around that 37.25 zone. We can see that area back here acting as resistance in 2022, here in 2023, and now again in 2024. That seems like a pretty interesting level of resistance that I think we should pay attention to.
I’m going to set an alert on my chart right here in Doximity ( NYSE: DOCS ), right around that 37.22 zone, and let you know to look for a strong move through that level, coming on volume. Now, of course, it will probably take the entire Market to go up to really break this stock out. Because a lot of times you can get fake breakouts when the Market’s going down you can have a stock that fakes out to the upside.
We don’t want that to happen, so keep an eye on this stock for a fake out. But if the Market is going up and this stock is able to break out of this range, I think this could definitely be an actionable idea for you to take for a bit of a ride. Now, in terms of upside targets, I would definitely keep an eye on that 44.00, 45.00 here. And then maybe over here as well, just around 47.00.
If you are able to get in this stock and ride it up here, ideally before earnings kick in in November I think that this could definitely be an actionable idea if the Market cooperates, and if this is able to break out of this long base of consolidation.
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