2025 Idea - DocuSign
$DOCU
DOCU 0.00%↑ is a name I wrote about back in both January and March -
It muddled around for most of the year before taking off in Q4. I’ve made some money on the trade but the going forward plan is what’s relevant.
I absolutely love taking AVWAP’s from relatively recent (<5 years) IPO’s and monitoring them for potential turns (in either direction). We can see above that DOCU 0.00%↑ ran it’s IPO AVWAP and pulled right back down.
DOCU 0.00%↑ made the power move up following its 12/5 earnings report, where they beat street estimates. It’s pulled back into the gap range and it’s at a juncture where I’m looking for an opportunity to add.
Stabilization within the gap range and subsequent moves higher above the AVWAP from the earnings release move will be the precursors to the longer term move above the IPO AVWAP from the first chart above.
Will it happen? I have no idea. But I want to increase my DOCU 0.00%↑ exposure on a break above these levels, as it signals to me a more protracted move that should be on the horizon for the stock.