Is DROPBOX INC-CLASS A Ready to Break Out of Its Range?

DROPBOX INC-CLASS A (NASDAQ:DBX) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:DBX.

Technical analysis of NASDAQ:DBX

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, DBX scores 8 out of 10 in our technical rating. Although DBX is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• When compared to the yearly performance of all other stocks, DBX outperforms 48% of them, which is more or less in line with the market.
• DBX is part of the Software industry. There are 279 other stocks in this industry, DBX did better than 40% of them.
• DBX is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so DBX is lagging the market.
• In the last month DBX has a been trading in the 25.09 - 28.27 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

For an up to date full technical analysis you can check the technical report of DBX

How do we evaluate the setup for NASDAQ:DBX?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:DBX is 9:

DBX has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 26.31, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for DBX in the last couple of days, which is a good sign.

How to trade NASDAQ:DBX?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

More breakout setups can be found in our Breakout screener.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.