DocuSign, Inc. Price Analysis Powered by AI

DocuSign Faces Post-Panic Drift: More Downside Likely Before Stabilization

Price Action Since February: After a high-volume plunge on June 6 (from ~$92.9 to ~$75.3), price action has reflected extreme volatility and aggressive selling pressure, breaking a multi-month uptrend that existed from March through May (highs seen around $94).
Current Structure: The current price ($77.04) remains well below the pre-drop consolidation zone ($85-$92), suggesting a structural breakdown.
Bearish Continuity: Previous support zones ($78-$80) have failed, and price found only brief support at $76-$77. Recent modest rebound attempts have been weak and low-volume compared to Friday's high-volume selloff.

June 6 Volume Spike: 22.6M shares (5–10x normal), typical of panic or large institutional unloading.
Subsequent Days: Volume on June 9 and 10 is highly elevated but declining, indicating attempted stabilization yet weak inbound demand.
Conclusion: The signature of heavy distribution and only tentative dip-buying.

Choppy, Weak Rebounds: Most hourly candles show wicks on both ends with closes near or below opens, typifying confusion/indecision. Bulls staged no meaningful rallies.
Persistent Lower Highs: Each rebound attempt stalls under $78, with sellers renovating pressure on minor upticks.
Support Level at $76.50–$77: Price tested $76.55 twice and bounced marginally.

50-day SMA & 200-day SMA: Pricing is decisively below both, signaling entrenched bearish bias.
Actual Numbers (Estimates): 50SMA near $85, 200SMA near $80. Price is at $77 — a strong negative divergence.

Estimate (from pattern): After such a sharp drop, RSI likely dipped to low 30s or upper 20s, indicating short-term oversold but not yet rebounding.
No Floor Established: Despite short-term oversold, selling abates only slightly, indicating sellers not exhausted.

Likely Bearish Cross: Strong negative momentum, MACD lines sloping downward and histogram expanding in the negative — trend exhaustion not signaled.

Bearish Gap: Massive gap down from $92.90 (June 5) to $76.78 (June 6) is unfilled — gaps of this type often lead to further downside or slow grind before a reversal.

Congestion Zone Above: Major trapped longs from $80–$92 are likely to provide further selling on any bounce (overhead resistance).

Large Red Marubozu (June 6): Signals strong conviction by sellers.
Hourlies (June 10): Mostly small bodies with wicks—dojis, spinning tops—point to indecision but a lack of forceful buying.

ATR (Implied): Recent daily range expanded from $2–3 (typical) to over $10 on June 6; currently stabilizing but remains elevated ($1.5–$2 daily range).
Implication: Ongoing volatility and higher risk — patterns favor momentum/trend rather than mean-reversion until volatility compresses.

No Impressive Short-Covering: Despite slightly oversold conditions, no violent bounce (as would be typical if shorts were covering). Suggests shorts are confident, and buyers are hesitant.
No Capitulation Bottom: Volume is high but not climactic; candles are not forming hammer-bottom reversals, so capitulation may not yet be complete.

Nearly all classic technical signals—trend, momentum, volume, moving averages, failure to bounce on oversold, weak order flow—suggest the risk remains on the downside. The lack of strong reversal candles implies that if $76.50 fails, $74–$75 is likely to be retested within 1–2 sessions.
The risk-reward for a long is poor. Even though the stock is oversold, the presence of trapped buyers guarantees overhead resistance and supply. Until conviction buying or reversal structures appear, it is best to lean bearish.

Optimal Entry: After a failed rebound toward $77.50–$78.00, enter short.
Stop-Loss: Above $78.75 (recent swing highs), limiting risk against possible short squeeze.
Target: Take profit at $74.50–$75.00 (retest of recent lows and possible lower support).

Decision: Sell (Short Position)
Open Price: $77.50 (ideal entry on a weak rally attempt toward prior minor resistances)
Close Price: $75.00 (cover at multi-day support, before the risk of a short-term bounce increases)