DoorDash (DASH) Price Forecast: Can Bulls Clear $200 Barrier?

Double Bottom Formation and Structural Support

DoorDash, Inc. (DASH) stock has established a double bottom type consolidation pattern. It found support and established a low for the bearish correction at $142.30 in March. That was a successful test of support near prior resistance seen near the March 2024 highs. An initial rally off that low established a lower swing high at $191.17, as a prior structure support zone was tested as resistance. Another decline followed that high before an eventual slightly higher swing low of $146.11 was formed in mid- June.

Breakout Attempt Above Neckline Resistance

A rally followed that second low, triggering a breakout above the lower swing high and neckline of the double bottom pattern at $191.17 on Friday, reaching a 21-week high of $193.44. On Monday, the advance extended to a high of $196.79, before pulling back intraday. Since bullish momentum began near the recent low, the fact that it diminished near a key potential resistance zone is not a surprise. However, the rally that preceded it does suggest that DASH is trying to break out of its bottoming formation.

200-Day Moving Average as Key Pivot Zone

In addition to resistance near the lower swing high of $191.17, dynamic resistance is also nearby and represented by the 200-day moving average, currently near $198.76 and falling. This means that by the time resistance is again tested, the 200-day average will be more closely aligned with the April high. That will add to its significance as a pivot zone. Therefore, an upside breakout would need to exceed the swing high and the 200-day moving average to be successful.

Support Levels to Watch on Pullbacks

Given the potential for an upside breakout and reclaim of the 200-day moving average, traders will be watching for pullbacks as potential opportunities to identify new signs of strength. Potential support from trend structure is indicated near $183.50 and $165.24. The 50-day moving average near $166.21 is key dynamic support and aligns near the lower structure area. There is also the 20-day moving average at $170.92 and rising, where there could be signs of support. Since the 20-day moving average was reclaimed during the current advance, an eventual test of the indicator as support is likely to occur at some point.

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