Swing Trader TA: Secure 7.38% DOCU Gain with Downtrend Protection
Downtrend Protection (TA) Swing Trader Strategy Delivers Impressive 7.38% Yield for DOCU
In an increasingly dynamic market, swing trading has become a critical tool for investors keen on optimizing returns. Notably, the Downtrend Protection (Technical Analysis) strategy, an innovation in the field of swing trading, has been performing exceptionally well, recently generating an impressive 7.38% yield for DOCU (DocuSign, Inc.).
Swing trading is an approach to the financial markets that seeks to capture gains in a stock within an overnight hold to several weeks. The strategy relies on capturing the “swing” in the momentum of the stock. This requires proficient knowledge of technical analysis and a keen understanding of market trends.
The Downtrend Protection (TA) strategy is an advanced swing trading technique that helps traders benefit from expected increases in stock prices. The recent uptrend in the DOCU stock epitomizes the potential of this strategy.
Following a substantial +4.19% three-day advance, the strategy estimates that the price of DOCU is poised for further growth. This prediction is not unfounded. On examining past instances where DOCU stock had advanced for three consecutive days, it was found that in 260 out of 321 cases, the price rose further within the following month. This statistical finding reveals an 81% chance of a continued upward trend, a rate significantly higher than the average market chance.
This potent efficacy of the Downtrend Protection (TA) strategy in predicting and capitalizing on price movements makes it a valuable tool in a swing trader's arsenal. Especially in the case of DOCU, the technical analysis has proven its accuracy and reliability, generating a significant yield and suggesting a positive future trend.
The Downtrend Protection (TA) swing trading strategy offers an efficient way to benefit from fluctuations in the stock market. With its demonstrated performance in the recent DOCU scenario, the strategy underscores its potential for substantial gains in swing trading.
Momentum Indicator for DOCU turns positive, indicating new upward trend
DOCU saw its Momentum Indicator move above the 0 level on September 23, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 77 similar instances where the indicator turned positive. In of the 77 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The 50-day moving average for DOCU moved above the 200-day moving average on October 02, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DOCU advanced for three days, in of 331 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 262 cases where DOCU Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for DOCU moved out of overbought territory on October 22, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 similar instances where the indicator moved out of overbought territory. In of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for DOCU turned negative on October 24, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DOCU declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
DOCU broke above its upper Bollinger Band on October 09, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DOCU’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.593) is normal, around the industry mean (30.698). P/E Ratio (161.750) is within average values for comparable stocks, (161.895). Projected Growth (PEG Ratio) (0.522) is also within normal values, averaging (2.738). Dividend Yield (0.000) settles around the average of (0.083) among similar stocks. P/S Ratio (4.405) is also within normal values, averaging (55.771).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DOCU’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a provider of cloud-based electronic signature solutions
Industry PackagedSoftware