The Deliveroo share price is hovering near its all-time high after the company announced a new partnership with Boots. The ROO stock is trading at 390p, which is slightly below its all-time high of 395p.
Deliveroo is expanding its business away from food delivery. The company that has grown to become one of the leading food delivery firm in the UK, announced a new deal with Boots. This will see its riders deliver some of its products like make-up and medicine. The company is also experimenting with grocery deliveries in the UK.
This new deal comes at a time when makeup sales have bounced back recently as the UK government has lifted its restrictions. A recent study that the sales of make up rose by about 61% in the first two quarters of the year.
The deal will be beneficial to both Deliveroo and Boots. For Deliveroo, it will help it to expand its services and its income. For Boots, the deal will help the company increase the speed of deliveries to 20 minutes. Previously, the company delivered its products the following day. This is also notable considering that Deliveroo has more than 3.6 million customers in the UK.
The four-hour chart shows that the ROO share price has been in a strong bullish trend. It has already recovered from its all-time low of 223p and moved slightly above its all-time high of 395p. The current resistance is understandable since it was an all-time high.
The Deliveroo share price rally is being supported by the 25-day and 50-day exponential moving averages (EMA). At the same time, other oscillators like the MACD and the Relative Strength Index (RSI) have been rising.
Therefore, while I suspect that the shares will continue the bullish trend, I cannot rule out a situation where the stock pulls back for a while. In the longer term though, the next key level to watch will be the resistance at 450p.