DOCU's 80-day moving average could push the stock closer to its September peak
The shares of DocuSign Inc (NASDAQ:DOCU) are down 2.6% at $212.46 at last check. And while the technology giant has cooled off from its Sept. 2 all-time-high of $290.23, the security still sports an impressive 240% year-over-year lead. Plus, the stock's latest pullback has it near a historically bullish trendline, which could help DOCU regain strength in the coming weeks.
More specifically, DocuSign stock just came within one standard deviation of its 80-day moving average, after spending the last several weeks above the trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, five similar signals have occurred during the past three years. More often than not, the security enjoyed positive returns one month after each signal, averaging a 11.9% gain. From the stock's current perch, a move of similar magnitude would put DOCU just above $237 -- closer to its previous peak.
For those wanting to weigh in on DocuSign stock's next move higher, options may be the way to go. The stock's Schaeffer's Volatility Index (SVI) of 55% sits higher than just 21% of readings in its annual range, suggesting short-term options are pricing in relatively low volatility expectations.