DoorDash Could Rally Fast If It Fills This Gap

MarketDash Editorial Team
20 days ago
DoorDash shares might be setting up for a sharp move higher thanks to a technical pattern that could eliminate selling pressure. Here's why gaps on stock charts matter more than you might think.

DoorDash Inc. (DASH) might look quiet right now, but there's an interesting technical setup brewing that could send shares sharply higher. It's all about something called "filling the gap," and it's why we're focusing on DoorDash today.

Let's start with a quick lesson in market psychology. One of the biggest reasons stocks face resistance at certain price levels is buyer remorse. Picture this: you buy shares at $280, watch them drop, and spend weeks or months promising yourself that if they ever climb back to your purchase price, you'll sell and get out at breakeven. This behavior creates selling pressure at predictable levels.

You can see this dynamic playing out on DoorDash's chart around the $280 mark. Traders who bought shares at that level in August watched the price tumble and made a mental note to sell when it returned. Sure enough, when the stock climbed back to $280 in October, those unhappy buyers flooded the market with sell orders, creating resistance.

But here's where it gets interesting. DoorDash recently gapped down from around $240 to $212. That means it closed one trading day near $240 and opened the next day around $212, with zero trades happening between those prices. It literally shows up as a blank space on the chart.

Here's why that matters: if there was no trading in that zone, there are no shareholders who bought between $212 and $240. And if there are no buyers in that range, there are no remorseful sellers waiting to dump their shares at breakeven.

This creates a curious situation. If DoorDash starts pushing back up into that $212 to $240 range, buyers might not encounter much selling pressure. That means they could be forced to pay increasingly higher prices to acquire shares, potentially pushing the stock up rapidly through those levels.

There's an old Wall Street saying: "Gaps tend to refill." DoorDash might be about to demonstrate exactly why traders still pay attention to that bit of market wisdom.

DoorDash Could Rally Fast If It Fills This Gap

MarketDash Editorial Team
20 days ago
DoorDash shares might be setting up for a sharp move higher thanks to a technical pattern that could eliminate selling pressure. Here's why gaps on stock charts matter more than you might think.

DoorDash Inc. (DASH) might look quiet right now, but there's an interesting technical setup brewing that could send shares sharply higher. It's all about something called "filling the gap," and it's why we're focusing on DoorDash today.

Let's start with a quick lesson in market psychology. One of the biggest reasons stocks face resistance at certain price levels is buyer remorse. Picture this: you buy shares at $280, watch them drop, and spend weeks or months promising yourself that if they ever climb back to your purchase price, you'll sell and get out at breakeven. This behavior creates selling pressure at predictable levels.

You can see this dynamic playing out on DoorDash's chart around the $280 mark. Traders who bought shares at that level in August watched the price tumble and made a mental note to sell when it returned. Sure enough, when the stock climbed back to $280 in October, those unhappy buyers flooded the market with sell orders, creating resistance.

But here's where it gets interesting. DoorDash recently gapped down from around $240 to $212. That means it closed one trading day near $240 and opened the next day around $212, with zero trades happening between those prices. It literally shows up as a blank space on the chart.

Here's why that matters: if there was no trading in that zone, there are no shareholders who bought between $212 and $240. And if there are no buyers in that range, there are no remorseful sellers waiting to dump their shares at breakeven.

This creates a curious situation. If DoorDash starts pushing back up into that $212 to $240 range, buyers might not encounter much selling pressure. That means they could be forced to pay increasingly higher prices to acquire shares, potentially pushing the stock up rapidly through those levels.

There's an old Wall Street saying: "Gaps tend to refill." DoorDash might be about to demonstrate exactly why traders still pay attention to that bit of market wisdom.