SIA Chartsā Relative Strength rankings not only help investors to identify which stocks in a universe are outperforming and underperforming against their peers, but also when relative performance trends are changing. Food delivery service DoorDash (DASH) joined the SIA NASDAQ 100 Index Report late last year in the green zone where it remained until dropping down into the Yellow Neutral Zone last week. Yesterday, DASH finished in 33rd position, down 8 places in the last week and down 30 spots in the last month. While in the green zone, DASH climbed 17.0%, compared with a gain of 13.9% for the NASDAQ 100 Index over the same period. Over the last month, accumulation has flipped to distribution in DoorDash (DASH) shares. Last month, several rally attempts failed to hold above $140.00 and since then, a new downtrend of lower highs has emerged. Along the way, DASH snapped an uptrend line and broke down below its 50-day moving average. The decisive break came when the shares gapped downward on a spike in volume, particularly since the shares have been unable to recover. Currently, Dash is trading between $110.00 support and $118.00 resistance near the bottom of the gap. A close below $110.00 would signal the start of a new downleg with next potential support near the $100.00 round number or $90.00.
DoorDash (DASH) had an impressive start to its life as a public company, staging big rallies in the summer of 2023 and again between November and April. It now appears, however, that a correction has started with a recent bearish Double Bottom breakdown signaling the start of a retreat. Initial downside support appears between the $100.00 round number and $98.60, which is based on a horizontal count, followed by $92.90 and $89.30 which are based on previous column highs and lows. Initial resistance on a bounce appears near $122.60 based on a 3-box reversal. With a bearish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 5 out of 10, DASH is exhibiting short-term weakness against the asset classes.
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