DigitalOcean - may have caught a bid here following 2023 back-end rally. 50 & 200 offering good support with a potential trend of higher highs and lows on the daily chart

DigitalOcean may have caught a bid following the end-of-year rally last year. With its share price now sitting around $37.55 a share, it seems like the moving averages are offering great support here for some consolidation. As the AI innovation is underway, many cloud computing companies are benefitting from it, creating room for growth and opportunities in the longer term. Hence, from a technical perspective, we can see that the 50MA is acting as the first line of support here with a bounce off it in yesterday’s session (50MA reads $36.22). A break below this level would then shift the focus towards $33.72, which is the support level along the 200MA. At the moment, it seems like a trend of higher highs followed by higher lows is at play, this will be confirmed if we see a move above $40.95 from the current level. This would allow investors to eye up a potential gap closure near $45-$46 a share. However, the indicators have turned somewhat mixed following the recent pullback to the 50MA. The MACD has turned slightly negative on the daily but the RSI remains neutral as it reads 52.