The bull run in the Deliveroo (LON: ROO) share price may continue as the stock has overcome a major resistance on its chart. The rally is fuelled by an improved market sentiment due to the cooling down of inflation and due to a technical breakout.
On Wednesday, the share of the delivery company showed increased volatility. The shares opened lower at around 135.5p but the buyers immediately stepped in and pushed it higher. Consequently, the stock was changing hands just above 140p till press time.
According to the latest Delveroo news, the company’s stock has received a rating downgrade from Bernstein. In addition, the private wealth manager has reduced its price target for ROO from the previous 170p to 150p.
However, the following chart tells a different story. The recent breakout above 132p has turned the Deliveroo share price forecast very bullish. If the price flips this level into a support in the coming days, I expect a move toward the weekly imbalance that lies above 180p.
This post was last modified on Nov 22, 2023, 15:54 GMT 15:54