DoorDash Sees A Large Gap Higher

DoorDash Inc. DASH shares are trading higher Wednesday after the company announced third-quarter financial results.

DoorDash reported quarterly revenue of $1.27 billion, beating the estimate of $1.18 billion. The company reported a quarterly earnings loss of 30 cents per share.

DoorDash was up 15.16% at $221.11 at press time.

See Also: Why DoorDash Shares Are Rising Today

DoorDash Daily Chart Analysis

• The stock saw a gap up Wednesday morning to resistance, but has since fallen away from resistance in what technical traders call an ascending triangle pattern.
• The $225 level has been an area of resistance in the past shown by the many candlesticks unable to cross above this level. The higher low trendline is an area where the stock has found support in the past and may again in the future.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is in a period of bullish sentiment.
• Each of these moving averages may hold as a potential area of support in the future.
• The Relative Strength Index (RSI) made a move higher Wednesday and now sits at 60. This is halfway between the overbought area and the middle line, meaning there is a decent amount more of buying pressure than selling pressure in the market.

What’s Next For DoorDash?

Bulls are looking to see the stock be able to break above resistance soon and begin to hold the level as an area of support. This would allow the stock to see a large bullish push in time.

Bears are looking to see the stock be unable to cross resistance and head back toward the higher low trendline. If the higher low trendline were broken, the stock may see a change in trends and possibly start downtrending.