Stock Price Trends

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 19.88% per annum.
  • DXC price at the close of April 28, 2025 was $15.65 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 83.91% per annum.
  • DXC price at the close of April 28, 2025 was higher than the top border of the secondary price channel by $0.47 (3.11%). This indicates a possible reversal in the secondary trend direction.

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 5, 2021
End date: August 26, 2024

a = 3.8790

b = -0.0006

s = 0.0807

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0006) – 1
= -19.88%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0807) – 1
= 38.09%

May 5, 2021 calculations

Top border of price channel:

Exp(Y256)
= Exp(a + b × X256 + 2 × s)
= Exp(a + b × 371 + 2 × s)
= Exp(3.8790 + -0.0006 × 371 + 2 × 0.0807)
= Exp(3.8151)
= $45.38

Bottom border of price channel:

Exp(Y256)
= Exp(a + b × X256 – 2 × s)
= Exp(a + b × 371 – 2 × s)
= Exp(3.8790 + -0.0006 × 371 – 2 × 0.0807)
= Exp(3.4923)
= $32.86

August 26, 2024 calculations

Top border of price channel:

Exp(Y1,088)
= Exp(a + b × X1,088 + 2 × s)
= Exp(a + b × 1,580 + 2 × s)
= Exp(3.8790 + -0.0006 × 1,580 + 2 × 0.0807)
= Exp(3.0809)
= $21.78

Bottom border of price channel:

Exp(Y1,088)
= Exp(a + b × X1,088 – 2 × s)
= Exp(a + b × 1,580 – 2 × s)
= Exp(3.8790 + -0.0006 × 1,580 – 2 × 0.0807)
= Exp(2.7581)
= $15.77

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 19.88% per annum.
  • DXC price at the close of April 28, 2025 was $15.65 and was inside the primary price channel.

Secondary Trend

Start date: January 23, 2025
End date: April 23, 2025

a = 11.7731

b = -0.0050

s = 0.0406

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0050) – 1
= -83.91%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0406) – 1
= 17.66%

January 23, 2025 calculations

Top border of price channel:

Exp(Y1,190)
= Exp(a + b × X1,190 + 2 × s)
= Exp(a + b × 1,730 + 2 × s)
= Exp(11.7731 + -0.0050 × 1,730 + 2 × 0.0406)
= Exp(3.1953)
= $24.42

Bottom border of price channel:

Exp(Y1,190)
= Exp(a + b × X1,190 – 2 × s)
= Exp(a + b × 1,730 – 2 × s)
= Exp(11.7731 + -0.0050 × 1,730 – 2 × 0.0406)
= Exp(3.0327)
= $20.75

April 23, 2025 calculations

Top border of price channel:

Exp(Y1,252)
= Exp(a + b × X1,252 + 2 × s)
= Exp(a + b × 1,820 + 2 × s)
= Exp(11.7731 + -0.0050 × 1,820 + 2 × 0.0406)
= Exp(2.7448)
= $15.56

Bottom border of price channel:

Exp(Y1,252)
= Exp(a + b × X1,252 – 2 × s)
= Exp(a + b × 1,820 – 2 × s)
= Exp(11.7731 + -0.0050 × 1,820 – 2 × 0.0406)
= Exp(2.5822)
= $13.23

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 83.91% per annum.
  • DXC price at the close of April 28, 2025 was higher than the top border of the secondary price channel by $0.47 (3.11%). This indicates a possible reversal in the secondary trend direction.