DXC Technology Co (DXC)
DXC Technology is an American multinational corporation that provides business-to-business information technology services.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is decreasing.
- The decline rate of the primary trend is 19.91% per annum.
- DXC price at the close of November 19, 2024 was $19.59 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 69.74% per annum.
- DXC price at the close of November 19, 2024 was lower than the bottom border of the secondary price channel by $0.45 (2.22%). This indicates a possible reversal in the secondary trend direction.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of DXC price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: May 7, 2021
End date: August 27, 2024
a = 3.9783
b = -0.0006
s = 0.0805
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0006) – 1
= -19.91%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0805) – 1
= 38.01%
May 7, 2021 calculations
Top border of price channel:
Exp(Y367)
= Exp(a + b × X367 + 2 × s)
= Exp(a + b × 534 + 2 × s)
= Exp(3.9783 + -0.0006 × 534 + 2 × 0.0805)
= Exp(3.8146)
= $45.36
Bottom border of price channel:
Exp(Y367)
= Exp(a + b × X367 – 2 × s)
= Exp(a + b × 534 – 2 × s)
= Exp(3.9783 + -0.0006 × 534 – 2 × 0.0805)
= Exp(3.4924)
= $32.87
August 27, 2024 calculations
Top border of price channel:
Exp(Y1,198)
= Exp(a + b × X1,198 + 2 × s)
= Exp(a + b × 1,742 + 2 × s)
= Exp(3.9783 + -0.0006 × 1,742 + 2 × 0.0805)
= Exp(3.0798)
= $21.75
Bottom border of price channel:
Exp(Y1,198)
= Exp(a + b × X1,198 – 2 × s)
= Exp(a + b × 1,742 – 2 × s)
= Exp(3.9783 + -0.0006 × 1,742 – 2 × 0.0805)
= Exp(2.7577)
= $15.76
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 19.91% per annum.
- DXC price at the close of November 19, 2024 was $19.59 and was inside the primary price channel.
Secondary Trend
Start date: May 17, 2024
End date: November 15, 2024
a = 0.4543
b = 0.0014
s = 0.0519
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0014) – 1
= 69.74%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0519) – 1
= 23.08%
May 17, 2024 calculations
Top border of price channel:
Exp(Y1,129)
= Exp(a + b × X1,129 + 2 × s)
= Exp(a + b × 1,640 + 2 × s)
= Exp(0.4543 + 0.0014 × 1,640 + 2 × 0.0519)
= Exp(2.9355)
= $18.83
Bottom border of price channel:
Exp(Y1,129)
= Exp(a + b × X1,129 – 2 × s)
= Exp(a + b × 1,640 – 2 × s)
= Exp(0.4543 + 0.0014 × 1,640 – 2 × 0.0519)
= Exp(2.7279)
= $15.30
November 15, 2024 calculations
Top border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,822 + 2 × s)
= Exp(0.4543 + 0.0014 × 1,822 + 2 × 0.0519)
= Exp(3.1994)
= $24.52
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,822 – 2 × s)
= Exp(0.4543 + 0.0014 × 1,822 – 2 × 0.0519)
= Exp(2.9917)
= $19.92
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 69.74% per annum.
- DXC price at the close of November 19, 2024 was lower than the bottom border of the secondary price channel by $0.45 (2.22%). This indicates a possible reversal in the secondary trend direction.