Our stock screener has flagged DOORDASH INC - A (NYSE:DASH) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:DASH for potential movement.
What is the technical picture of NYSE:DASH telling us.
ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.
We assign a technical rating of 8 out of 10 to DASH. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, DASH is only an average performer.
- Both the short term and long term trends are positive. This is a very positive sign.
- DASH is part of the Hotels, Restaurants & Leisure industry. There are 141 other stocks in this industry. DASH outperforms 75% of them.
- In the last month DASH has a been trading in the 62.83 - 69.96 range, which is quite wide. It is currently trading near the high of this range.
- Looking at the yearly performance, DASH did better than 89% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.
- DASH is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so DASH is lagging the market.
How does the Setup look for NYSE:DASH
ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:DASH is 8:
Besides having an excellent technical rating, DASH also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 69.36. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 66.66, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for DASH in the last couple of days, which is a good sign.
How can NYSE:DASH be traded?
To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.
Of course, there are many ways to trade or not trade NYSE:DASH and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.
More breakout setups can be found in our Breakout screener.
