DoorDash is building bullish momentum. Is it a good buy?

DoorDash Inc. (NYSE:DASH) is trading at $107.10. The company has picked a bullish pattern after announcements of key partnerships with Albertsons Companies and Madison Square Garden Entertainment.

The deals signal a good year for DoorDash. Patient investors keen on making a good return should consider buying this stock within the range of the current lows.

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DoorDash is expected to cross above $160 in the coming weeks

Technical analysis of DoorDash indicates that it has already started gathering bullish momentum. MACD histogram momentum towards convergence started building in the first week of February and has been sustained since then.

This week the divergence is at only -1.79, showing that the MACD is about to cross-touch the signal. Though still below the oscillator, the movements are an indication of bullish momentum.

Looking at the RSI, the first week of March marks the beginning of bullish momentum as the stock moves from the oversold region. Last week, the RSI crossed above the 14-day average signaling a buy.

The last two weeks have seen price movements closing higher. The stock opened at $84 and closed at 107. This week the price opened at $103 and has since then regained the high of $107. Though the moving averages for 10 and 20 days are below the 50-day, we are confident that the valuation is rising gradually but surely.

Summary

DoorDash has great prospects both fundamentally and in market valuation. The share is a strong buy at the price of $107. We project that the share price will move to rise above the 50-day moving average of $160.

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