In today’s trading session, Deliveroo’s share price has surged by more than 4 per cent. The intraday trading activity also looks likely to continue pushing the prices up throughout the session.
However, despite today’s price surge and yesterday’s bullish push, Deliveroo’s share price has continued to underperform in the markets. Last week, the company’s value dropped by 13 per cent, with year-to-date data showing a 60 per cent drop, a sign of a consistent downward trend throughout the year.
The company’s struggle in the markets has been in tandem with its financial situation, whereby in its interim financial report last month, it recorded a loss before income tax of £147m. The loss was a 54 per cent increase over the same period last year.
The UK’s inflation rate has also exacerbated the company’s efforts to recover, with its cost of operations going up. Most of their customers have also had to cut on using services such as Deliveroo due to the rising cost of living, which has affected the company’s bottom line.
The daily chart below shows that Deliveroo has traded within demand and supply zones of 77p and 115, respectively, since May 5, 2022. The chart also shows that, in the past few trading session, the markets have been extremely choppy, with no significant movement that would indicate a trend is forming. The Williams Alligator indicator also gives a signal of a struggling horizontal market with no momentum for going long or short.
Therefore, using the chart below, my Delveroo share price prediction expects the Deliveroo share price to continue trading sideways. There is a high likelihood that the current demand and supply zones of 77p and 115, respectively, will hold for the next few weeks.
My analysis will only be invalidated if prices are able to move out of the demand and supply zones. If prices move below the 77p price level, then a new bearish trend will have been established. A move above 105p will indicate a bullish trend formation.
This post was last modified on %s = human-readable time difference 14:06