After entering the $ 23 area in February, Dropbox, a well-known company and data storage service that many of us use, acquired Docusend on March 9 (the rumor had already been out for a while).
The rather important climb up to $ 28 is no coincidence (we are very close to the 2018 listing price).
I report the graph with the Bollinger Bands because in this case, they can be useful (often they are, especially for the exit from the operation on shares that have violent bullish uptrend due to catalyzing events).
The price in fact on the day of March 18 made an equally fast pull-back which was completed on March 25 when opened in a gap below the EMA 20. The price, however, rebounded well and closed above the average.
On that day I set the Target at $ 28 and the stop-loss below the day’s low.
In the following days we had a rather evident 1-2-3 of Joe Ross, (inversion pattern) which leads the price in the past week to touch the previously set target, and then retraced again with the more classic of double highs.
Almost perfect trading operation.
Now we will see what will happen to a company that I consider one of the most interesting for trading, thanks to its rather volatile nature.
Interesting levels for possible future are certainly:
the $ 25 area where strong support has been created (first resistance)
the $ 23 area where I previously purchased (volumetric analysis – POC).
If, on the other hand, Dropbox continues to rise, the fundamental condition is the breaking of the $ 28, resistance tested twice by the price.
However, I point out that we are quite close to the all-time highs of the stock.
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DISCLAIMER: I am not a financial advisor nor a CPA. These posts, videos, and any other contents are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.