In today’s stock of the day, let’s focus on DocuSign, which is now flashing a proper buy signal.
The stock has been in a broader uptrend, but in the first half of the year, it entered a bearish correction phase. This correction took the form of a wedge pattern, marked with blue lines on the chart. Wedge formations that occur within uptrends typically act as continuation patterns—and that seems to be the case here.
At the beginning of May, DocuSign broke out of the wedge to the upside, delivering a technical buy signal. That breakout alone was encouraging, but the real confirmation came last week, when the price also climbed above a key horizontal resistance level (highlighted in yellow), which had been acting as a ceiling since mid-January.
Currently, DocuSign is trading above the wedge and above the yellow resistance, reinforcing a strong bullish sentiment. With these barriers cleared, the next technical target lies at the long-term highs from December.
As long as the price remains above the broken resistance and outside the wedge, the bullish outlook remains valid.