DoorDash, Inc. (DASH) Recently Broke Out Above the 20-Day Moving Average
DoorDash, Inc. (DASH) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, DASH crossed above the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
DASH has rallied 7.5% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests DASH could be on the verge of another move higher.
The bullish case solidifies once investors consider DASH's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 8 higher, while the consensus estimate has increased too.
Investors should think about putting DASH on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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DoorDash, Inc. (DASH) : Free Stock Analysis Report
