DoorDash Inc. - (DASH) - May 14, 2024 (Daily Stock Report)


SIA Charts’ 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.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

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