Asana Stock Is Up 53.7% Over The Past Month. Is a Pullback Long Overdue?

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Simon Mugo
Updated: 17 Sep 2021

Asana Inc (NYSE: ASAN) stock has risen 53.7% over the past month as company insiders led by its CEO Dustin Moskovitz continue accumulating shares in the firm.


According to a credible report, Dustin Moskovitz bought an additional 750,000 shares of Asana last week, bringing his total share purchases over the past three months to $217 million.

The cloud-based workplace collaboration and planning tool company also got a boost from a bullish investor note issued by Brent Thill, an analyst at Jefferies Financial Group.

Thill maintained a buy rating on the company and raised his price target on the company from $90 to $115. However, the firm has already surpassed this price target as of today.

Here’s where I believe that Asana stock is now overdue a substantial correction, or at the very least, a sideways trading range over the medium-term, to relieve the overbought conditions that are seen on the chart below.

Asana stock price has formed a parabolic chart pattern, although the rally has been staggered over the past three weeks. Still, such patterns are typically followed by a significant pullback.

Given that Asana stock has formed a subtle parabolic shape instead of a sharp one, we might get a minor retracement instead of a larger one, but either way, we are now due for a correction on the stock.

While nobody can predict future stock price movements with 100% certainty, the odds at this time favour a pullback more than a continuation of the current rally.

*This is not investment advice.

Asana stock price.

Tradingview chart of Asana share price 17-09-2021

Asana stock has been up 53.7% over the past month. Is a pullback on the stock long overdue?

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