Okta Inc. (OKTA)

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3 Big Stock Charts for Monday: Disney, Okta, and RingCentral
By: InvestorPlace | December 30, 2019

• Monday's big stock charts highlight three names that could be set for a big move early in 2020

Okta (OKTA)



Source: Provided by Finviz

Okta (NASDAQ:OKTA), the second of Monday’s big stock charts, looks headed for a decision point:

• Recent trading has established what looks like a classic triangle pattern. The narrowing band of price movement usually suggests that a breakout looms.
• Forced to choose, investors should probably lean bullish. OKTA has established a solid uptrend since setting a double bottom in October. Shares have rallied in recent sessions, bouncing off moving averages in the process. The chart suggests a path to $130 — last month’s highs — from which Okta stock could re-test resistance at $140 that held in August.
• That said, there’s a bearish scenario here as well. Somewhat unusually, the 50-day moving average has crossed the 200-day twice in recent months. Any weakness would lead to yet another switch and a so-called “death cross” in which the 50DMA dips below the 200DMA. Valuation here is questionable, as I detailed back in October, which suggests that at least fundamentally a reversal wouldn’t be shocking.
• Of course, there’s no shortage of names that will struggle if investors again start questioning. Shopify (NYSE:SHOP) and DocuSign (NASDAQ:DOCU) are among them. But the second of Monday’s big stock charts shows that OKTA, too, is at risk. A downturn would push the stock below moving averages, and potentially lead to 15%-plus downside back to support at $100...

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