Stock of the day: Delivery Hero

Tuesday brings us an analysis of Delivery Hero. It’s the first time we mention this company on our portal and the reason why we’re mentioning it now is because its price is currently fighting for a proper buy signal after 4 months of continuously dropping.

First, let’s take a look at why the drop even started. From a technical point of view, the drop was influenced by a symmetric triangle pattern (red lines) and to be precise by the bearish breakout from this formation. The price has been dropping pretty much non-stop since the end of November until now. With such a strong down trend, how can we see any positive sentiment here?

Well, first of all, you can see that DHER managed to break the main down trendline (green). Also, over the past few weeks, the price created a wedge pattern (blue), and today, DHER is trying to break its upper line. This breakout could bring us a proper, long-term, buy signal. Traders can be optimistic but the breakout isn’t there yet. So far, we have an attack but success can only be claimed when the price closes a day above the upper blue line – that will give us a buy signal.