DoorDash Jumps 4.48% As Technicals Signal Bullish Reversal Above $220 Support

Doordash (DASH) rose 4.48% in the most recent session, closing at $230.33 on substantial volume of 4.34 million shares. This analysis examines key technical indicators to assess the stock's trajectory.
Candlestick Theory
Recent price action shows a bullish reversal pattern. The June 23 session formed a strong white candle that engulfed the prior three days' range, suggesting renewed buying pressure. This occurred near the psychological $220 support level, which has held three tests since May. Resistance emerges near the $232-$235 zone, which capped advances in early June. A sustained close above $235 would confirm bullish conviction.
Moving Average Theory
The 50-day MA ($215.20) maintains an upward slope above the rising 100-day ($199.80) and 200-day ($178.90) averages, confirming a primary uptrend. Recent price dips found support at the 50-day MA, while the current position above all three key MAs signals intermediate-term strength. The ascending 200-day MA indicates long-term bullish momentum, though the widening gap between the 50-day and 200-day MA warrants monitoring for potential mean reversion.
MACD & KDJ Indicators
MACD exhibits a bullish crossover as the histogram turns positive after a brief dip into negative territory. Meanwhile, KDJ shows the %K line (78) crossing above %D (72) from oversold territory, supporting near-term upside momentum. Neither oscillator yet signals overbought conditions (MACD at 1.2; KDJ below 80), though KDJ's sharp rebound from 35 cautions against chasing extended moves.
Bollinger Bands
Bollinger Bands are expanding after a contraction period in early June, reflecting increasing volatility. Price recently rebounded from the lower band ($217) and now tests the middle band (20-day SMA at $222.40). A decisive move toward the upper band ($235) would signal strengthening momentum. The expansion phase supports directional conviction if volume confirms.
Volume-Price Relationship
Volume patterns validate the recent breakout, with the 4.34 million share session exceeding the 10-day average volume by 35%. Notable accumulation occurred during the June 4 and May 12 upswings (5.14M and 4.92M shares respectively), while distribution marked the June 20 high-volume decline (6.86M shares). Current volume expansion on price recovery suggests sustainable demand.
Relative Strength Index (RSI)
The 14-day RSI (65) sits in neutral territory after rebounding from 42 in mid-June. While not overbought, its sharp recovery from near-oversold conditions suggests momentum is rebuilding. The absence of bearish divergence (price made higher lows while RSI stabilized) reduces near-term reversal risks, though traders should monitor resistance tests for potential overextension.
Fibonacci Retracement
Using the March low ($100.28) and June high ($235.00), key Fibonacci levels show notable confluences. The 38.2% retracement ($181.50) aligned with the May consolidation floor, while the 23.6% level ($208) provided support during June's pullback. The recent bounce from $222 tested the 14.6% level ($221.80), establishing it as immediate support. Upside targets include the 123.6% extension at $248 if $235 resistance breaks.
Confluence & Divergence Observations
Confluence exists at $220-$222, where the 50-day MA, Fibonacci level, and Bollinger Band lower boundary reinforced the June low. Divergence emerged in early June when price hit new highs while MACD flattened – a warning that preceded the subsequent 8% correction. Presently, MACD/KDJ/RSI alignment suggests coordinated momentum rebuilding, with volume confirmation strengthening the bullish case. However, proximity to the $232-$235 resistance band requires cautious monitoring for reversal signals given this zone’s historical significance.