DigitalOcean Stock up 13%; Will the rally continue in DOCN Stock?

• DigitalOcean Stock Price (NYSE: DOCN) surges 13% in a single day and is racing toward the 52 week high.
• DOCN Stock Price sustains above the 50 and 200 day EMA and displayed a golden crossover.
• The DigitalOcean Stock Price forming a bullish continuation pattern.

DigitalOcean Stock Price (NYSE: DOCN) surges 13% in a single day and formed a bullish continuation pattern. DOCN Stock Price showed a sharp bounce from the 50 day EMA indicating the dominance of buyers. 

DigitalOcean Stock Price performed well in the past few months and generated decent returns for the long term investors. The prices are rising upward by forming higher high swings denoting the bulls are returning back to track. 

In the beginning of May, DOCN Stock Price took support near $28.00 and consolidated for a few weeks. It showed signs of short term base formation. Later, in the beginning of June, DOCN Stock broke out of the $40.00 hurdle and rallied 25% approx in the short span of time. 

The momentum halted near $47.00 and witnessed minor profit booking from the higher levels. Well, the buyers succeeded in defending the $40.00 level and showed a surprising recovery. 

The momentum is still intact and buyers seem to be racing to hit the 52 week high. DigitalOcean Stock Price closed the previous session at $45.09 with an intraday rise of 13.38%. The market capitalization stands at $4.00 Billion. 

DigitalOcean Stock: The bulls are back

DigitalOcean Stock Price is up by 76% on the YTD basis and no signs of weakness is visible. Recently, the massive spike in the buying volume is visible and prices also followed the same direction. 

It indicates some big players might have injected the money and expecting outperformance in the coming months. Till the DOCN Stock is sustaining above the $37.00 the prices are expected to remain in the bulls grip and more upward momentum is possible. 

The next phase of the rally will trigger when buyers will be able to break out of the swing high hurdle at $47.00. If buyers succeed to break the hurdle then 15% upside is possible in a short span of time. 

DOCN Stock Price Analysis on weekly time frame

DOCN Stock Price formed a bullish Marubozu candle on a weekly time frame. It boosted the confidence of the long term investors. The buyers seem to be more active as compared to sellers. 

The broader market is performing well which might positively impact the sentiment of the investors. 

The MACD curve is reversing upward and on the way to generate a positive crossover. It indicates bullish momentum is likely to continue for some more time. The RSI at 64 pointing north denotes the strength as well as the confidence of the bulls. 

Conclusion

DigitalOcean Stock Price (NYSE: DOCN) surges 13% in a single day and recovers the losses of past few weeks. The DOCN Stock is in uptrend and the rally is likely to continue in coming months. 

Technical levels

Resistance levels: $48.00 and $53.00

Support levels: $37.00 and $28.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.