Deliveroo shares getting ready to spring higher?
A recovery from its 2022 low has been very slow progress, but analyst Alistair Strang believes something significant has just taken place.
24th April 2025 07:32
Many folk will remember the Deliveroo (LSE:ROO) IPO on the stock exchange, an event which was a bit of a disaster. By the end of 2021, the writing was on the wall, with the share price enacting a tragic death plunge thereafter. It’s now tickled the first vague promise that proper recovery may commence.
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Closing the session of 23 April at 136p, something quite significant took place. When we map the rate of descent, the trend line was at 135.954p and by 46 thousands of a penny, it had closed a session above the trend. While it is easy to mock this sort of thing, experience teaches us that the market rarely makes mistakes when in proximity of a trend. Unless, of course, it decides to gap the share down below the trend, anytime soon.
The current situation suggests movement next above 137p should trigger the potential of movement to an initial 142p with our secondary, if bettered, at 158p and probable hesitation. We shall view future closure above 158p as significant, entering a big picture phase with a long distance attraction from 235p.
If things intend to go wrong, below Red at 116p risks promoting real trouble, the first step of a reversal cycle to an eventual 80p.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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