Check out the RS in $DOCS – December 19, 2024
This is Scott at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a look at Doximity ( NYSE: DOCS ).
Doximity ( NYSE: DOCS ) is outperforming many stocks in the market right now. If I look at the SPY ( NYSEARCA: SPY ) we see SPY ( NYSEARCA: SPY ) closing at the lows, and not a breakout in sight. The QQQ ( NASDAQ: QQQ ) makes a lower low on the daily chart. IWM ( NYSEARCA: IWM ) is down near the lows,
And so it’s really odd to find a stock that is not only green today but closing near the highs and doing it on volume. That tells me that Doximity ( NYSE: DOCS ) has a pretty high amount of relative strength, versus the rest of the stocks in the market. I think that this is definitely a stock that we should pay attention to. Just on a technical level, we see Doximity ( NYSE: DOCS ) finding support just under the 21-day EMA in the near- term. Down here, longer-term right near that 50-day moving average is a level of support.
And today’s price action, we have a clear downward-sloping trendline, resistance, resistance, resistance. Ir broke above today, closed above, and again, did it on pretty good volume. Those are key metrics that I look for in terms of stocks that are potentially actionable, or at least watch-list worthy.
Because of the weakness in the market, I’d probably wait for the market to turn around before starting a position. But I would definitely want to set a breakout alert here on Doximity ( NYSE: DOCS ) right around this 56.70 level. We can see how 56.70 was resistance here, and it was resistance here.
It’s a pretty key level, and if we want a clear breakout and a test of this high from over here, then we will have to first tackle this level and do it ideally on good volume. So we’ll want to see that volume come in again, and see the buyers push this stock above a pretty clear level of resistance.
That could give us a test of this all-time high at around $62.00. That’s not a big swing trade of anything like that but it sure is better than sitting on your hands and watching the S&P ( INDEXSP: .INX ) and the QQQs ( NASDAQ: QQQ ) go down and close near the lows. So definitely keep an eye on Doximity ( NYSE: DOCS ), set an alert right around 56.70, and look for that breakout coming on volume.
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