Doordash Stock Flat At 238.79 As Bearish Signals Emerge After 248 Peak

Doordash (DASH) closed flat at $238.79 on July 3, 2025, following a volatile session within a $237.83–$242.15 range, concluding a period of consolidation after a sharp rally in June. The technical analysis below examines key patterns and indicators governing the stock's trajectory.
Candlestick Theory
Recent candlesticks reveal a bearish reversal pattern emerging near the $248 resistance level. The July 1 session formed a long red candle (open: $246.51, close: $238.01) with a wide high-low spread ($12.20), signaling aggressive selling after an uptrend. This was followed by a doji on July 3 (open and close near $238.79), indicating indecision. Key support now rests at $231.75 (June 26 low), while resistance holds firm at $248.74 (July 1 high). A decisive break below $237.83 (July 3 low) may trigger further downside.
Moving Average Theory
The 50-day SMA (~$220), 100-day SMA (~$205), and 200-day SMA (~$185) are all sloping upward, confirming a long-term bullish trend structure. The price remains above all three averages, reinforcing positive momentum. However, the convergence of the 50-day and 100-day SMAs suggests potential short-term consolidation. The 200-day SMA has acted as a reliable floor since Q1 2025, with breaches historically marking buying opportunities.
MACD & KDJ Indicators
The MACD (12,26,9) generated a bearish crossover on July 1, with the histogram turning negative as the fast line crossed below the signal line. This divergence aligns with the price retreat from $248. The KDJ oscillator (9,3,3) shows the %K line crossing below %D at overbought territory (above 80) on June 30, reinforcing bearish near-term momentum. While both oscillators flag caution, the MACD’s location above the zero line implies the broader uptrend remains intact.
Bollinger Bands
Bollinger Bands (20-day, 2 SD) contracted sharply in late June, preceding the July 1 volatility expansion. Price recently tested the middle band (~$235) as temporary support. The upper band near $248 now serves as resistance, while the lower band at ~$222 offers the next major support. The bands’ narrowing post-July 1 suggests reduced directional conviction, typical of consolidation phases.
Volume-Price Relationship
Volume surged 49% on June 30 during the rally to $246.51, validating upside momentum. Conversely, the July 1 sell-off occurred on 40% higher volume than the prior month’s average, confirming distribution. Recent sessions (July 2–3) saw volume decline 30% below average during sideways action, signaling hesitancy. A break below $238 on elevated volume would reinforce bearish control.
Relative Strength Index (RSI)
The 14-day RSI retreated from overbought (71.3 on June 30) to 55.5 by July 3, neutralizing extreme conditions. While the current reading suggests balanced momentum, the rapid decline from overbought territory warns of near-term exhaustion. Historically, dips below 40 have preceded reversals during this uptrend. Traders should monitor for bullish divergence if prices decline while RSI stabilizes.
Fibonacci Retracement
Using the swing low of $220.46 (June 20) and swing high of $248.74 (July 1), key Fibonacci levels are identified: 23.6% ($241.50), 38.2% ($237.46), and 50% ($234.60). Recent consolidation has centered around the 38.2% retracement ($237.46), coinciding with the July 3 low of $237.83. This level now acts as pivotal support; failure here may expose the 50% retracement at $234.60. The 61.8% level ($231.74) aligns with the June 26 low.
Confluence and Divergence Observations
Confluence supports the $237–$238 zone, where Fibonacci 38.2% retracement, the July 3 low, and Bollinger middle band intersect. A sustained break below this area would align with bearish MACD/KDJ crossovers and declining volume conviction, potentially targeting $231.75–$234.60. Divergence exists between RSI’s neutral reading and the MACD’s bearish crossover, reflecting conflicting momentum signals. The primary trend remains bullish, but near-term weakness appears likely unless price reclaims $242.15.