Docusign (DOCU)
By Tue, Mar 24, 2020
Dear Readers,
Hopefully you and your family are holding up okay right now.
My wife and I are self-quarantining, so I know it can be a really stressful time for everyone.
Fortunately, I’ve got something to help…
Today’s Chart of the Week trade idea.
Sure, it’s a crazy market, but there are plenty of strong opportunities available to traders if you know where to look.
And today, we’re looking at virtual office services.
Specifically, Docusign (DOCU).
Docusign is impossible to ignore right now.
It’s essentially a more affordable Zoom.
Zoom is ripping right now, while the market is getting crushed.
I like Docusign for the same reasons because everything is being signed electronically.
Just like how people need to conference virtually, documents and contracts still need to be signed virtually.
And Docusign is the industry standard for this service.
Looking at the chart, we’ve got similar relative strength. And philosophically, DOCU makes the same sense as Zoom.
I love the relative strength in this chart, and the breakout in relative strength and on an absolute basis.
From a risk reward standpoint, it’s much more favorable for the bulls here.
We’re long above 76 with a price target of 122.
Relative strength and momentum are just too good to ignore.
Til next time, stay safe everyone.
JC Parets
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About the Author
JC Parets, founder of All Star Charts, specializes in finding the most opportunistic risk vs. reward propositions while at the same time bringing a top/down approach to the marketplace whose wide spectrum is rivaled by few. JC begins with a long-term global macro perspective and then works his way down to the individual sector and industry level before ultimately isolating the stocks that best portray a particular thesis. Price is the most important technical indicator, but JC uses supplements such as Momentum, Relative Strength, and Fibonacci analysis to complete the process.
