Docusign "Signing Up" Well
Docusign ($DOCU) is a stock that may have leadership potential in 2021. There are a few things that stand out to me. First, in our COVID-19 world, legal documents must continue to be signed even if it has to be done remotely. This is where Docusign comes in as it allows businesses to prepare and finalize agreements digitally. Once COVID-19 is behind us, the efficiency of Docusign means it is likely here to stay.
From a technical standpoint, there are few things that look really good to me. First, DOCU more than tripled from the March 2020 lows until mid-July. Since then, it has been consolidating constructively. This base is showing lots of accumulation with very little distribution. When an innovative stock like DOCU emerges from a large base, there is potential for a substantial move higher.
I took a position in Docusign last week with a stop loss below recent lows. If DOCU heads higher, I am looking to add some more shares as it may be "signing up" well as a market leader in 2021.
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Full Disclosure: Docusign is a stock I currently own.
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