DoorDash has fought its way higher since the spring on signs of widening adoption. Now the delivery company may be presenting an opportunity after a pullback.
Two important things appear on the chart this week. First, DASH tested and held the $195.45 area. That was the high on August 13, a high-volume bullish outside candle.
Monday's dip resulted in a close below the 50-day simple moving average (SMA). But prices quickly snapped back on Tuesday, producing a potential false breakdown. That’s especially noteworthy because the 50-day SMA has been support for DASH since June.
The stock is also interesting because it doesn’t belong to any big indexes yet (despite being larger than three-quarters of the S&P 500). It may need a little more time to stabilize here and overcome the short-term downtrend. But traders may be watching to see if it keeps holding the 50-day SMA.
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