Delivery Hero shares are on the verge of a possible new all-time high. The problem: In order to achieve this, the DAX newcomer’s share price has to overcome a massive chart-technical hurdle. The share of the food delivery service is currently quoted at 104.30 euros, gaining 2.91 percent over yesterday’s XETRA closing price and has already peaked at 104.85 euros today. The price increase of the last few days is at least partly related to the new uncertainties in connection with the development of the corona pandemic: The sharply increasing number of cases is again targeting stocks that can benefit from lockdown measures and contact restrictions – such as Delivery services for food ordered via the Internet.
But back to the technical situation of the Delivery Hero share, which was recently included in the DAX as a “replacement” for Wirecard. The broad resistance zone that needs to be overcome is due to two striking price peaks: On the one hand, the all-time high of July 6, 2020 at EUR 106.20, and on the other hand the daily high of August 18, 2020 at EUR 105.00 – both XETRA Base. The fact that Delivery Hero’s share price is already showing slight weakness in the course of the day after rising to 104.85 euros and thus to the lower end of the resistance zone does not have to be overstated. An unsuccessful attempt to break in this zone could turn into a tough technical mortgage for the DAX in the coming days. This is especially true if the first smaller sell signals would then arise at EUR 98.80 / 99.90 and the tendency to take recent profits would increase.
Without a stable breakout to a new all-time high, it means: Great risk of setbacks. If, on the other hand, the stable breakout above 105.00 / 106.20 euros succeeds, this could give the Delivery Hero share a significant boost in the short term.