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 19.45% per annum.
- DXC price at the close of May 8, 2024 was $19.90 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 0.75% per annum.
- DXC price at the close of May 8, 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: May 8, 2024
a = 4.0810
b = -0.0006
s = 0.0770
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0006) – 1
= -19.45%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0770) – 1
= 36.07%
May 13, 2021 calculations
Top border of price channel:
Exp(Y507)
= Exp(a + b × X507 + 2 × s)
= Exp(a + b × 735 + 2 × s)
= Exp(4.0810 + -0.0006 × 735 + 2 × 0.0770)
= Exp(3.7995)
= $44.68
Bottom border of price channel:
Exp(Y507)
= Exp(a + b × X507 – 2 × s)
= Exp(a + b × 735 – 2 × s)
= Exp(4.0810 + -0.0006 × 735 – 2 × 0.0770)
= Exp(3.4915)
= $32.84
May 8, 2024 calculations
Top border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(4.0810 + -0.0006 × 1,826 + 2 × 0.0770)
= Exp(3.1530)
= $23.41
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.0810 + -0.0006 × 1,826 – 2 × 0.0770)
= Exp(2.8450)
= $17.20
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 19.45% per annum.
- DXC price at the close of May 8, 2024 was $19.90 and was inside the primary price channel.
Secondary Trend
Start date: August 3, 2023
End date: May 8, 2024
a = 3.0291
b = 0.0000
s = 0.0611
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0000) – 1
= 0.75%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0611) – 1
= 27.68%
August 3, 2023 calculations
Top border of price channel:
Exp(Y1,066)
= Exp(a + b × X1,066 + 2 × s)
= Exp(a + b × 1,547 + 2 × s)
= Exp(3.0291 + 0.0000 × 1,547 + 2 × 0.0611)
= Exp(3.1828)
= $24.11
Bottom border of price channel:
Exp(Y1,066)
= Exp(a + b × X1,066 – 2 × s)
= Exp(a + b × 1,547 – 2 × s)
= Exp(3.0291 + 0.0000 × 1,547 – 2 × 0.0611)
= Exp(2.9385)
= $18.89
May 8, 2024 calculations
Top border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(3.0291 + 0.0000 × 1,826 + 2 × 0.0611)
= Exp(3.1885)
= $24.25
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.0291 + 0.0000 × 1,826 – 2 × 0.0611)
= Exp(2.9441)
= $18.99
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 0.75% per annum.
- DXC price at the close of May 8, 2024 was inside the secondary price channel.