Moreover overcoming those resistances in turn becomes the opportunity. Every attempt at holding support on the way down becomes a hindrance on the way up. If the bulls can overtake that with force, they can then rally another 25% from there. Just as there is support below current price, there is definite resistance into $24 per share. The bears will need a Black Swan event to break the opportunity in Dropbox - and equities in general. The VIX remains too high yet the buying of stocks persists. They recovered from the Covid-19 crash and set new highs against all odds. Investors on Wall Street were nervous on Monday and Tuesday from a combination of headlines but in reality nothing has changed. The test from the quarantine was a serious one. The thesis today is that it has seen its lows for a while. This doesn’t mean immediate profits, but the idea is to buy low and sell high. Dropbox Stock Has Upside for Patient Investors It’s up to management - it’s their game to lose, as they say in sports terminology. The trend will continue for a long while, and demand on Dropbox products and services should remain strong. Using the cloud is no longer an option - the virus made it a necessity.
Long-term, this management team will carve a nice niche for themselves in this ever-growing online space. If this malaise on Wall Street persists, there should be even better opportunities to add Dropbox stock. This is a true representation of “somewhere in the middle lies the truth,” so I expect support below. The current price is almost exactly in between that and the recent highs. The knee-jerk reaction from the pandemic panic caused a very deep March bottom. The bulls have given up almost 23% from May, and they are falling into support zones. What makes this opportunity even better is the fact that the stock has already corrected from its recent highs. In short, there is enough room for all providers of such services to thrive. The DBX long-term thesis got more bullish under the new work-from-home normal. Demand for anything cloud related soared so much so that there is more room for it to grow. The lockdown turbocharged the migration online.
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