Technical Analysis: DoorDash Reports Earnings — Here's What To Watch

DoorDash Inc DASH shares traded lower Wednesday in anticipation of the company’s earnings call, but the stock surged after the print.

DoorDash reported quarterly losses of 45 cents per share, which missed the consensus estimate of a 27-cent loss. Fourth-quarter revenue of $1.3 billion beat the consensus estimate of $1.28 billion and was up 34% year-over-year.

DoorDash closed down 6.76% at $94.89 but is trading higher by 26.99% in after-hours trading at publication.

See Also: DoorDash Q4 Earnings Highlights: Revenue Up 34%, 25M MAUs, Stock Surges

DoorDash Daily Chart Analysis

• Shares have been on a steady downward trend after they had a break below support in what traders call an ascending triangle. Bears have been in control of the stock as it sees a strong downward trend.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has started to trend higher the past couple of weeks and sits at 38 on the indicator. This shows the selling pressure has been easing up as more buyers have entered into the market although it still remains dominated by sellers. A cross above the middle line may be a good sign for a possible reversal.

What’s Next For DoorDash?

The stock has been on a steady downward trend for the past few months and traders now need to watch for a strong move after the earnings announcement. Bullish traders are looking to see the stock begin to form higher lows and start to head back toward the $225 level. Bearish traders are in control of the stock and are looking to see it continue to dip lower. Bears want to see the RSI fall back lower and for the stock to hold below the moving averages.

Photo: Courtesy DoorDash.