Doordash Bottom Formed, Strengthens idea to go Long

5 thg 9, 2023

Hi guys! Welcome to an analysis on macro developments of Doordash (DASH). With the markets doing what they've been doing this year, we have to ask, " Will the % gains come to stocks that are still many many % down from their tops"? Or are some stocks just doomed to fizzle out and take time to re-build/ grow?

Well, if we are in a Bull market, which i personally think we are... Assets with Solid Market Structure & Technicals will also be included into the liquidity being injected into the markets.

Taking a glance under the hood with DASH, i can see some promising developments playing out. Making me consider DASH as a Long play.

This analysis is strictly on Technicals and is on the 1 Week timeframe to get a big picture view.

From the Lows of Doordash we ended up forming a Ascending Triangle Pattern.

We ended up with a clean break, followed by 3 weeks of testing supporting at the breakout point, the flat trendline.

Ascending triangles are usually Continuation patterns.

BUT at market bottoms, it can act as a Bottoming pattern.

The breakout of the Ascending Triangle allowed us to break resistance at the time, now turned SUPPORT.

We hit our measured move of the Ascending Triangle, to the T.

We ended up retracing back to the Resistance turned "Support Zone (Green rectangle).

We tested support for 2 weeks, followed by the print of a Bullish Engulfing Candle (last week) which confirmed our Support here.

The reason to go long here is of 2 folds:
1. The presence of a bottoming pattern, the Ascending triangle in this case.
2. The confirmation of MAJOR SUpport at this "Support Zone".

These 2 things enhance our chances of price gains to the "MAJOR RESISTANCE" line.
This would be a Major area to take profits.

ALong with these, my MOmentum indicators are showing potential for BULLISH momentum to come in.

STOCH RSI is crossing Bullish, once it moves ABOVE the 20 level. This will indicate Positive momentum to come into this asset.

ALong with MACD, last week printed a Dark Green histogram. This shows strengthening of Bullish momentum.

We are also ABOVE the 0 level, as long as we stay above with a BUllish cross, probabilities of further Price Gains are likely.

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Stay tuned for more updates on DASH in the near future.

If you have any questions, do reach out. Thank you again.

DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.

21 thg 9, 2023

Ghi chú

We've technically been in an Uptrend since October 2022. Shown by this Uptrend Channel present.

But we've been rejected from the Upper Resistance border of the Channel.

We are also confirmed Below BOTH 21 EMA and 50 SMA.

Notice also A Lower Low print on RSI. Signifying further Sell pressure and chance of more oversold conditions to come.

We also have a Bearish MACD cross and Below 0 level, this indicates Bearish momentum is coming in and will take over.

Watch for a retrace to the bottom of the channel and the lower border of the Green rectangle Support Zone.

We would need to look for signs of confirmation of support.
Until proven otherwise, which is a breakdown out of the channel and confirmation. Our Uptrend is intact.

NOTE: Ive made slight adjustments on the Support Zone rectangle.
Ive extended it down below to the $66 level.
Hard to tell where it really ends or begins.
But i also made it coincide with the Upper flat trendline of the Ascending Triangle pattern and the lower trendline of Upward Channel.