At last week’s lows shares of DocuSign 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/’21 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/PM