DOCU's 100-day moving average usually sends shares lower
DocuSign Inc (NASDAQ:DOCU) is 1.5% higher at $56.41 this afternoon, extending a bounce off support at the $49 region. The equity is about to hit familiar pressure at the $57 region, however, and could add to its 5.2% year-to-date deficit, as the recent uptick has it flashing a historically bearish signal.
More specifically, DocuSign stock just came within one standard deviation of its 100-day moving average. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, five similar signals occurred during the past three years. The stock moved lower in the ensuing month in 80% of those instances, averaging an 11.4% loss. From its current perch, a move of similar magnitude would put the shares back below $50.
Betting on DOCU's next move with options could prove to be the right move. This is due to DocuSign stock's Schaeffer' Volatility Index (SVI) reading of 48% that sits in the relatively low 24th annual percentile.