For DOCS, the Writing Is on the Wall

Doximity (DOCS)  is a n online professional networking platform that allows physicians, nurse practitioners and physician assistants to find each other and communicate without violating privacy laws. The company missed on revenue in earnings released Thursday night. A sell-side firm changed its fundamental rating to "Sell" from "Hold" and cut its price target. The firm cut forward guidance. 

Let's check out the charts and indicators. 

In this daily bar chart of DOCS, below, we can see that prices made a low in May and then rallied toward the underside of the declining 200-day moving average line. DOCS gapped below the 50-day moving average line today. The gap could get filled, but this probably will not improve the picture. The daily On-Balance-Volume (OBV) line is turning lower. The Moving Average Convergence Divergence (MACD) oscillator is pointed lower but still above the zero-line. 

In this weekly Japanese candlestick chart of DOCS, below, we can see two upper shadows as prices stopped short of the declining 40-week moving average line -- a sign that traders are rejecting the highs. The weekly OBV line is pointed down and the MACD oscillator, while rising, is still below the zero-line. 

In this daily Point and Figure chart of DOCS, below, we can see the price decline without a gap. A downside price target of $24 is indicated. 

In this weekly Point and Figure chart of DOCS, below, we can see a potential downside price target in the $21 area. 

Bottom line strategy: The charts of DOCS are weak. Avoid the long side.

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