Optionally Play a Possible Rebound in This Beaten-down Tech Stock

Shares of Accenture (ACN) have fallen roughly 30% so far this year, with much of the pressure tied to concerns that federally driven spending cuts often referred to as “DOGE” risks could weigh heavily on its government-focused business. However, in the company’s September 25 earnings update, management eased some of those worries by pointing to stronger bookings, bolstered in part by growing demand for AI-related services.

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While Accenture’s fundamentals support the long-term story, my trading approach focuses more on price action and technical confirmation. For this setup, I’m leaning on three of my most reliable indicators: the RSI, the DMI, and the MACD. Together, they suggest the stock may be setting up for a bullish turn.

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The Relative Strength Index (RSI) has been climbing after spending most of September hovering near oversold territory. That move higher is encouraging, since it often signals that downside momentum is losing steam and buyers are starting to step in.

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decisive rebound from the 30 zone on the RSI is usually the first sign that sellers are losing their grip. For Accenture, the latest bounce suggests that sentiment may finally be shifting back toward the upside.

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The Directional Movement Index (DMI) is also flashing a constructive setup. The DI+ line (green) has started to turn upward while the DI– line (red) is easing back. Meanwhile, the ADX (blue), which measures trend strength, is beginning to stabilize.

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This combination typically points to fading bearish pressure and the early stages of a potential trend reversal. If DI+ continues to climb above DI– while the ADX firms, it would add another layer of conviction to the bullish case.

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The third and final confirmation comes from the Moving Average Convergence Divergence (MACD) indicator, which I view as one of the most reliable reversal tools. On September 25, Accenture’s MACD line (blue) crossed above the signal line (yellow) a classic sign that upward momentum is taking over.

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When paired with RSI strength and improving signals from the DMI, the MACD crossover rounds out the bullish technical checklist. This alignment suggests that Accenture may be preparing for a rebound after months of heavy selling pressure.

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Why It Matters for Investors

With Accenture’s fundamentals showing resilience particularly the rebound in bookings and AI-driven demand and multiple technical indicators pointing to a potential reversal, the setup looks increasingly favorable for traders seeking entry points.

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While risks tied to government spending cuts remain, the market may have already priced in much of the downside. That leaves room for technical momentum to drive a near-term rally, especially if sentiment continues to shift.

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