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DigitalOcean Holdings, Inc. (DOCN) Recently Broke Out Above the 200-Day Moving Average

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From a technical perspective, DigitalOcean Holdings, Inc. (DOCN - Free Report) is looking like an interesting pick, as it just reached a key level of support. DOCN recently overtook the 200-day moving average, and this suggests a long-term bullish trend.

The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. The marker moves higher or lower along with longer-term price moves, and serves as a support or resistance level.

DOCN could be on the verge of another rally after moving 22.5% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.

The bullish case solidifies once investors consider DOCN's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 8 higher, while the consensus estimate has increased too.

Investors may want to watch DOCN for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

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