DOCU - test longDOCU is looking attractive for a short term trade with near term target @67-68 (18% upside from current price). There is potential for a longer term ride should the stock be able to trade and stay above it's 200 day moving average going forward.
Reasons for going Long:
1. On the monthly chart, we can see that DOCU could have formed a double bottom @ 35
2. downward trend has been slowly shifting to neutral with slight upward bias at the moment
3. some accumulation has been taking place in the past 2 weeks+ as with the marked increased in average daily volume
4. recent pullback to 50% fib retracement (acceptable range)
5. bullish morning star formation (trigger for Long entry)
Initial stop loss just below the morning star pattern (around 51.50) with near term target at 67-68 (horizontal resistence and 200 day moving average).
Potential for a longer term ride with trailing stops.
Go long at the next candle as soon as we have price trading just above the close of yesterday's candle with initial stop placed just slightly below the low of the morning star pattern (~ 158).
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
