{"id":8884,"date":"2021-08-18T11:57:52","date_gmt":"2021-08-18T15:57:52","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=8884"},"modified":"2021-08-18T12:01:25","modified_gmt":"2021-08-18T16:01:25","slug":"docs-bull-flag-breakout","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/docs-bull-flag-breakout\/","title":{"rendered":"Hot Recent IPO Trade Alert: $DOCS Poised for Bull Flag Breakout Now"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/210818DOCSBLOG.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/210818DOCSBLOG.png\" alt=\"\" width=\"606\" height=\"603\" title=\"\"><\/a><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/docs-bull-flag-breakout\/#After_a_massive_rally_last_week_Doximity_DOCS_has_pulled_back_to_short-term_support_and_is_now_forming_a_powerful_bull_flag_chart_pattern_Heres_how_to_trade_it_with_the_ideal_entry_and_exit_points\" >After a massive rally last week, Doximity ($DOCS) has pulled back to short-term support and is now forming a powerful bull flag chart pattern. Here&#8217;s how to trade it with the ideal entry and exit points.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/docs-bull-flag-breakout\/#DOCS_forms_a_bull_flag\" >$DOCS forms a bull flag<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/docs-bull-flag-breakout\/#Doximity_Buy_Setup\" >Doximity Buy Setup<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/morpheustrading.com\/blog\/docs-bull-flag-breakout\/#DOCS_Exit_Strategy\" >$DOCS Exit Strategy<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"After_a_massive_rally_last_week_Doximity_DOCS_has_pulled_back_to_short-term_support_and_is_now_forming_a_powerful_bull_flag_chart_pattern_Heres_how_to_trade_it_with_the_ideal_entry_and_exit_points\"><\/span>After a massive rally last week, Doximity ($DOCS) has pulled back to short-term support and is now forming a powerful bull flag chart pattern. Here&#8217;s how to trade it with the ideal entry and exit points.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Doximity ($DOCS) is a cloud-based medical growth stock that just launched its IPO in June with a thirteen billion dollar market cap.<\/p>\n\n\n\n<p>We monitor all liquid IPOs on our <em><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">Wagner Daily<\/a><\/em> watchlist, as the lack of overhead supply in IPOs can lead to explosive moves over a short period of time.  <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"DOCS_forms_a_bull_flag\"><\/span>$DOCS forms a bull flag<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>$DOCS broke out from a month-long trading range on August 11, as the price gapped and closed 33% higher on volume that was roughly 3x greater than its 20-day volume average.  <\/p>\n\n\n\n<p>The price and volume action remained strong the following day, as Doximity gained another +13% on higher volume.  <\/p>\n\n\n\n<p>Since the <a href=\"https:\/\/new.morpheustrading.com\/blog\/monthly-stock-charts\/\" target=\"_blank\" rel=\"noreferrer noopener\">breakout<\/a>, the price has chopped around in a fairly tight range (given the sharp run-up), with volume tapering off as well.<\/p>\n\n\n\n<p>Ideally, we would have liked to have seen the volume dry up a bit more on August 13 and 16, but volume was still lower than the breakout volume (which is bullish).<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/210818DOCSBLOG.png\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/210818DOCSBLOG.png\" alt=\"\" title=\"\"><\/a><figcaption><em>Press to view full-sized image<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Doximity_Buy_Setup\"><\/span>Doximity Buy Setup<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>On August 17, $DOCS broke out from a tight, bull flag-like consolidation, but failed to follow through to the upside.<\/p>\n\n\n\n<p>$DOCS closed well off the highs of the August 17 session, but the price action tightened up on the <em>hourly<\/em> chart, just beneath the 20-period exponential moving average.<\/p>\n\n\n\n<p>Take a look at the 60-minute chart time frame below:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/210818DOCSBLOG.png\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/210818DOCSBLOG2.png\" alt=\"\" title=\"\"><\/a><figcaption><em>Press to view full-sized image<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>The 20-period EMA on the hourly chart is often a low-risk pullback entry point for stocks that have made a significant move over a short period of time (such as 2-5 days).  <\/p>\n\n\n\n<p>While many traders wait for a pullback to the <a href=\"https:\/\/new.morpheustrading.com\/blog\/10-day-moving-average-support\/\" target=\"_blank\" rel=\"noreferrer noopener\">10-day moving average<\/a> (on the daily chart), we often see the 20-period EMA on the hourly chart provide support before the next wave up.<\/p>\n\n\n\n<p>$DOCS is potentially in play over the next one to two days IF the price can punch through the 20-EMA\/60 min. chart and hold.<\/p>\n\n\n\n<p>However, all bets are off if the Nasdaq and\/or S&amp;P 500 break down below Tuesday&#8217;s lows.  <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"DOCS_Exit_Strategy\"><\/span>$DOCS Exit Strategy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If buying $DOCS on the bull flag breakout, consider selling into strength after it breaks out to new highs.<\/p>\n\n\n\n<p>Rather than guessing the top of a rally, we typically use trailing stops to maximize profits on our winning swing trade entries.<\/p>\n\n\n\n<p>However, we have observed over the years that IPOs can be difficult to hold through a &#8220;normal&#8221; pullback.<\/p>\n\n\n\n<p>As such, we employ a slightly different exit strategy with IPOs.<\/p>\n\n\n\n<p>Rather than locking in gains by letting the price fall to our stop price, we prefer to proactively sell most IPOs into strength.<\/p>\n\n\n\n<p>As always, we will immediately alert <a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Wagner Daily<\/em><\/a> and <a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts#Wagner-Daily-PRO\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Wagner Daily<\/em> PRO<\/a> subscribers of our exact entry, stop, and target prices if $DOCS is added to our Model Portfolio.<\/p>\n\n\n\n<p><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Subscribe now<\/strong><\/a> to receive full trade details for the most explosive stock trade setups in the market now.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After a massive rally last week, Doximity ($DOCS) has pulled back to short-term support and is now forming a powerful bull flag chart pattern. Here&#8217;s how to trade it with the ideal entry and exit points. Doximity ($DOCS) is a cloud-based medical growth stock that just launched its IPO in June with a thirteen billion [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[5],"tags":[],"class_list":["post-8884","post","type-post","status-publish","format-standard","hentry","category-stock-picks-analysis"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/8884","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=8884"}],"version-history":[{"count":7,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/8884\/revisions"}],"predecessor-version":[{"id":9012,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/8884\/revisions\/9012"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=8884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=8884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=8884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}