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 20.19% per annum.
- DXC price at the close of July 26, 2024 was $20.06 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 310.68% per annum.
- DXC price at the close of July 26, 2024 was inside the secondary price channel.
- 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 13, 2021
End date: July 26, 2024
a = 4.0589
b = -0.0006
s = 0.0807
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0006) – 1
= -20.19%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0807) – 1
= 38.10%
May 13, 2021 calculations
Top border of price channel:
Exp(Y452)
= Exp(a + b × X452 + 2 × s)
= Exp(a + b × 654 + 2 × s)
= Exp(4.0589 + -0.0006 × 654 + 2 × 0.0807)
= Exp(3.8162)
= $45.43
Bottom border of price channel:
Exp(Y452)
= Exp(a + b × X452 – 2 × s)
= Exp(a + b × 654 – 2 × s)
= Exp(4.0589 + -0.0006 × 654 – 2 × 0.0807)
= Exp(3.4934)
= $32.90
July 26, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(4.0589 + -0.0006 × 1,824 + 2 × 0.0807)
= Exp(3.0933)
= $22.05
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(4.0589 + -0.0006 × 1,824 – 2 × 0.0807)
= Exp(2.7705)
= $15.97
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 20.19% per annum.
- DXC price at the close of July 26, 2024 was $20.06 and was inside the primary price channel.
Secondary Trend
Start date: May 20, 2024
End date: July 26, 2024
a = -4.0468
b = 0.0039
s = 0.0443
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0039) – 1
= 310.68%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0443) – 1
= 19.37%
May 20, 2024 calculations
Top border of price channel:
Exp(Y1,211)
= Exp(a + b × X1,211 + 2 × s)
= Exp(a + b × 1,757 + 2 × s)
= Exp(-4.0468 + 0.0039 × 1,757 + 2 × 0.0443)
= Exp(2.8418)
= $17.15
Bottom border of price channel:
Exp(Y1,211)
= Exp(a + b × X1,211 – 2 × s)
= Exp(a + b × 1,757 – 2 × s)
= Exp(-4.0468 + 0.0039 × 1,757 – 2 × 0.0443)
= Exp(2.6647)
= $14.36
July 26, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(-4.0468 + 0.0039 × 1,824 + 2 × 0.0443)
= Exp(3.1011)
= $22.22
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(-4.0468 + 0.0039 × 1,824 – 2 × 0.0443)
= Exp(2.9240)
= $18.62
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 310.68% per annum.
- DXC price at the close of July 26, 2024 was inside the secondary price channel.