The on-demand food delivery service DoorDash (DASH) suffered a price decline from November to May, but now the charts are looking more constructive and traders may want to order a hundred shares in addition to dinner.
Let's check out the charts and indicators.
In this daily bar chart of DASH, below, we can see the decline in price from November and the shift to a sideways trend in May. Prices are showing buying interest (support) around $60 and trading volume looks like it is more active telling us that prices have reached a level or area where investors are showing increased interest.
The On-Balance-Volume (OBV) line looks like it finished its decline from November in early May. The improvement in the OBV in recent weeks suggests that buyers are now being more aggressive than sellers.
The Moving Average Convergence Divergence made a higher low in May when prices made a lower low - this difference is a bullish divergence and now the MACD oscillator is not far below the zero line. Crossing the zero line from below is a buy signal.
In this weekly Japanese candlestick chart of DASH, below, we see a mixed picture. We can see a few lower shadows in May that set the stage for a bottom reversal. DASH trades below the declining 40-week moving average line. The weekly OBV line continued lower into June.
The 12-week price momentum study shows a higher low in June versus February to give us a bullish divergence when compared to the price action making a lower low. The pace of the decline has slowed and that can foreshadow a rally in price.
In this daily Point and Figure chart of DASH, below, we can see a potential upside price target in the $103 area.
In this weekly Point and Figure chart of DASH, below, we see the same $103 price target.
Bottom line strategy: Aggressive traders could use Wednesday's dip to probe the long side of DASH risking to $59. Traders looking for more buy signals should wait for strength above $75 before buying.
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