At last week’s lows, shares of DocuSign (NASDAQ:DOCU) had retraced 50% of its powerful rally off the March 2020 lows. Since the September peak, the stock has spent nearly the entire last eight months consolidating inside that month’s range. Has a bottom finally been reached?
DOCU reached deeply oversold levels in early March. A divergent low is now in place.
The $187-$189 area is a very solid support zone. This key area held the August, September, November and March 2021 lows. After taking out this zone, the stock was able to limit further damage. DOCU is back above this area today.
A close back below $179.00 would indicate a much more drawn-out basing pattern will be needed before DOCU is set for a rebound.
Earnings are due June 3.
Note: We have no position.
You can read Gary S. Morrow's original post here.