DASH: Chart of the Week
This week we are profiling DoorDash; symbol DASH.
Daily chart is strongly bullish
The chart has been moving upwards – bottom left to upper right – since putting in a low back in January at the $45 level. It’s up nearly 85% since that level back in January. You can see when we put the trend line in here, it’s connecting a series of higher lows.
The chart has blue candlesticks, which tells us from the go-no-go indicator, that this is strongly bullish. With the parabolic SAR in bullish mode as well there’s good support for this stock. It’s been making a nice series of higher lows since breaking out at the early part of June.
Take a look at the other indicators, too. MACD is still on a buy signal. The trader’s dynamic index, which compares where relative strength is versus bollinger bands, is also on a buy signal and has been since the end of May.
Take a look at this bottom chart, which really impresses me – the on-balance volume. This is an accumulation of all the volume that has been taking place for a series of time. It is strongly bullish.
Weekly chart is very bullish too
Let’s step back and look at the weekly chart. The weekly chart is also showing us a nice bullish formation. We don’t often see the weekly and the daily in line, but we do see that in this particular case.
One area where we could have a little trouble here might be at the 100 week moving average, which comes in at $93 or so. Currently the stock is at $85, so we have a little room to go – a 14% move to the upside.
Chaikin money flow on the weekly chart is awfully bullish. And again this MACD is still quite bullish, too.
We’ve seen a beautiful steep slope of relative strength on the weekly chart, and we are now overbought. Overbought does not mean sell. If you have some gains on the stock, take some money off the table, and wait for a pullback here.
I’m a momentum trader, and I like a name like this to carry through with some momentum. Earnings will be coming out in a couple of weeks.
I do like DoorDash on the weekly and daily chart. Maybe give it a shot with some options.
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