Dropbox Breaks Out on the Charts Amid M&A Speculation

Dropbox  (DBX) – Get Report rallied 5.9% on Friday before bursting higher after the close of trading. Those after-hours gains carried over to Monday, with shares up another 4.5%.

At the day’s high, shares were up more than 7.2%. The momentum with this name has been strong lately, surprising some bulls given how sluggish it’s been over the past few months.

Following Salesforce’s  (CRM) – Get Report acquisition of Slack  (WORK) – Get Report, some investors got busy looking at other potential M&A targets.

Among that group was Dropbox, which is why the stock ran so hard on Friday. Some bulls are surprised by the follow-through price action on Monday, giving some credibility to the thesis that it very well may be a buyout candidate after all.

When we look at the technicals, the situation also is improving

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Trading Dropbox

Daily chart of Dropbox stock.

Daily chart of Dropbox stock.

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