DoorDash Inc. (NYSE:DASH) shares rallied Friday after the company reported better-than-expected first-quarter revenue.
The company reported quarterly revenue of $1.08 billion, beating the estimate of $993.32 million. The company reported a loss of $0.34 per share, below the estimate calling for a loss of $0.26 per share.
DoorDash was up 19% at $1380 at last check.
Related Link: Why DoorDash Stock Is Dashing Higher Today
DoorDash Daily Chart Analysis
- Shares have been falling the past few months and are trading in what technical traders may call a falling wedge pattern.
- The stock crossed above the 50-day moving average (green) Friday, a possible sign that the stock may be looking more bullish.
- This moving average may hold as a support level in the future.
Key Levels To Watch
- DoorDash moved towards the resistance Friday, but as the pattern is in its earlier stages, it may not see a breakout quite yet.
- This bullish reversal pattern happens after the stock makes a large run-up and starts pulling back. The slope of the line connecting the highs is much steeper than the line connecting the lows.
- A break above resistance could let the stock move higher, while a break below resistance may hint that the stock is not done falling.
What’s Next?
Bullish technical traders would like to see the stock break out of the wedge pattern and see a move higher. The stock is still in the early stages of the pattern and bulls may not see this breakout until the stock consolidates for a time.
Bearish technical traders would like to see the stock fall below the pattern support line. A cross below the 50-day moving average as well as the pattern support line could bring a bearish outlook for the stock.
