I’m entering a long position in DocuSign (DOCU) at $77.55 following a pullback into the Ichimoku Cloud. The price broke above the cloud recently but has since retraced, now testing the top of the cloud along with horizontal support from the prior breakout zone near $76.50–$77.00. This area also aligns with the S1 pivot level, adding further confluence.
The trade setup uses a stop at $75.00, which is just below both the cloud and the S1 pivot, allowing for a clean technical invalidation if price fails to hold this zone. The target is $84.96, which corresponds to the recent swing high just under the R1 pivot. This gives a risk/reward ratio of 2.91 with a 3.29% downside and a 9.57% potential upside.
The MACD on the lower panel shows a clear bearish crossover, and the histogram continues to decline — so this is a counter-momentum entry, relying more on structural support than momentum confirmation. If price can base here and reclaim the Tenkan-sen (black line), I’ll look for a move back toward the prior high. If it fails and breaks below the cloud, I’ll cut the trade quickly.
This is a high-conviction technical setup with a clearly defined invalidation level and upside target.
The trade setup uses a stop at $75.00, which is just below both the cloud and the S1 pivot, allowing for a clean technical invalidation if price fails to hold this zone. The target is $84.96, which corresponds to the recent swing high just under the R1 pivot. This gives a risk/reward ratio of 2.91 with a 3.29% downside and a 9.57% potential upside.
The MACD on the lower panel shows a clear bearish crossover, and the histogram continues to decline — so this is a counter-momentum entry, relying more on structural support than momentum confirmation. If price can base here and reclaim the Tenkan-sen (black line), I’ll look for a move back toward the prior high. If it fails and breaks below the cloud, I’ll cut the trade quickly.
This is a high-conviction technical setup with a clearly defined invalidation level and upside target.
Trade closed manually
Trade closed - took the 1% loss. Looking elsewhere. 
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.