3 Reasons to Stay Away From Surging DoorDash Stock

DoorDash Inc (NASDAQ:DASH) stock is up 3% to trade at $189.32 today, extending its quarter-to-date gain to 25.8%. DASH is up 32% off a March 27, 52-weeklow of $143.34, but this rally may run out of steam as the food delivery giant tests a historically bearish trendline on the charts. 

Per Schaeffer's Senior Quantitative Analyst Rocky White, DoorDash stock is now within 0.75 of the 100-day moving average's 20-day average true range (ATR), after remaining below it 80% of the time in the last two weeks and in 80% of the last 42 trading sessions. This signal has occurred six times over the past 10 years, after which the security was lower one month later 83% of the time, averaging a loss of 17%. A comparable move would more than erase DASH's 10.1% bull gap from April 15. 

Longer term, the stock is contending with its year-over-year breakeven level. Should DASH continue to struggle, bear notes could add pressure. Of the 41 analysts covering the equity, 31 maintain "buy" or better ratings, with only one "sell" on the books. Digging deeper, the consensus 12-month price target of $252.89 is a 33.8% premium to its current perch.

It's also worth noting DASH sports a 14-day Relative Strength Index (RSI) reading of 69, right on the cusp of "overbought" territory, indicating a short-term breather may be in the cards.

Plus, the stock's Schaeffer's Volatility Scorecard (SVS) comes in at 77 out of 100. In simpler words, the equity has consistently realized higher volatility than its options have priced in over the past 12 months.