Here’s your trade on $DOCU – January 29, 2025
This is Scott at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a look at DocuSign ( NASDAQ: DOCU ).
Last night for the Chart of the Day I did mention software stocks, specifically, IGV ( BIT: IVG ) as breaking out above the 50-day moving average and doing it on high volume. Today we had a bit of an inside day pulling back just under here for a minute, back above on the close, but still relatively tame price action. It looks like a healthy retracement and test of yesterday’s action.
DOCU ( NASDAQ: DOCU ) has a very similar pattern. It got above the 50-day moving average after a lower open. It pushed through the 8-day and the 21-day, and today pulled back just above that 8-day exponential. This has been on quite a run, you can see back here in December it had a monster earnings move on high volume.
The last couple of months it hasn’t really done anything, it just pulled back into support. It had a healthy test here, in my opinion, of that 50-day moving average the other day, just on Monday. I think this is definitely a stock you want to keep an eye on. I specifically like this inside day today that came on lower than average volume after yesterday’s high volume break above a pretty clear level of resistance.
I would keep an eye on DocuSign ( NASDAQ: DOCU ) for a move through 99.20, coming on volume. If it can get above and close above 99.20 and do it on volume, I think you could enter that stock with a stop-loss rate under today’s intraday low at around 93.90. That’s the setup I’m looking at tonight for DocuSign ( NASDAQ: DOCU ).
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