Stock of the day: Delivery Hero

In today’s piece, we can see signs of optimism in the Delivery Hero previously analyzed at the end of March. Back then, the price was very close to a buy signal and we were suggesting such possibility by claiming:

“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 the day above the upper blue line – that will give us a buy signal.”

It was a good call, but only in for the first few days of April. The price indeed climbed higher and managed to accomplish an approximate 20% rise. I would say this kind of upswing is quite fine but we did not get a long-term reversal. At the end of April and in May, the price collapsed, dragging DHER to new, long-term lows.

Currently, the price is having another bullish setup. DHER formed a symmetric triangle (blue) and, most recently, managed to escape to the upside. This is a buy signal and the potential target for this upswing is EUR 51, which is the top of the triangle, but also support from 2020 and resistance from 2018. With the current sentiment, the chances of getting there are quite high.