DAVA Deep Base Breakdown: Stage 4 Downtrend, 78% Off Highs

Posted on by Eben@CANSLIM Research
DAVA daily stock chart with 10, 20, 50, 150 and 200-day moving averages, volume and RS line versus SPY, Stage 4 (Declining), as of September 02, 2026 at 01:06 — CANSLIM Research

DAVA is entrenched in a Stage 4 downtrend, trading 78.1% below its 52-week high with the price beneath a sharply declining 30-week moving average. The chart shows a faulty deep base pattern with an 82.2% depth, which historically carries an elevated failure rate. Overall sentiment is bearish, and the stock is failing most technical trend-template checks, making it a defensive avoid.

As of 2026-09-01 · Close $3.21

Stage 4 (Declining) — Price below a declining 30-week MA — downtrend (30-week MA 6-week slope: -12.94%)

⚠️ Faulty cup warning: the base is 82.2% deep (above the 38–40% threshold). A correction this deep leaves heavy overhead supply — trapped holders from higher prices are likely to sell into any rally, raising the failure rate of a breakout from this base.

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