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.
DOCU's Indicator enters downward trend
The Aroon Indicator for DOCU entered a downward trend on September 05, 2023. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 133 similar instances where the Aroon Indicator formed such a pattern. In of the 133 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 11, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on DOCU as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DOCU turned negative on September 12, 2023. 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 53 similar instances when the indicator turned negative. In of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at .
DOCU moved below its 50-day moving average on September 08, 2023 date and that indicates a change from an upward trend to a downward trend.
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 August 31, 2023. 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.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 9 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 11 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DOCU advanced for three days, in of 322 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (9.901) is normal, around the industry mean (19.799). P/E Ratio (0.000) is within average values for comparable stocks, (152.391). Projected Growth (PEG Ratio) (0.959) is also within normal values, averaging (2.624). Dividend Yield (0.000) settles around the average of (0.088) among similar stocks. P/S Ratio (3.191) is also within normal values, averaging (74.443).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. DOCU’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 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.
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 90, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of cloud-based electronic signature solutions
Industry PackagedSoftware
DOCU and
Correlation & Price change
A.I.dvisor indicates that over the last year, DOCU has been loosely correlated with ASAN. These tickers have moved in lockstep 65% of the time. This A.I.-generated data suggests there is some statistical probability that if DOCU jumps, then ASAN could also see price increases.
| Ticker / NAME | Correlation To DOCU | 1D Price Change % | ||
|---|---|---|---|---|
| DOCU | 100% | +1.67% | ||
| ASAN - DOCU | 65% Loosely correlated | +6.96% | ||
| BILL - DOCU | 64% Loosely correlated | +5.10% | ||
| COIN - DOCU | 62% Loosely correlated | +5.09% | ||
| ESTC - DOCU | 62% Loosely correlated | -2.60% | ||
| PCOR - DOCU | 61% Loosely correlated | +1.02% | ||
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