Technical Update - Just Eat forming bottom and reversal pattern, breaking bearish trend and is set for strong rebound
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Just Eat has for several weeks been showing divergence on RSI which is an indication of a weakening of the downtrend. Two weeks ago, it formed a Bottom and Reversal pattern in the form of a Bullish Engulfing and broke above its steep falling trendline. All in all, strong indications of a rebound.
A rebound that could take Just Eat to resistance at around 36.65.
Short-term Just Eat is at the time of writing testing at 19.25. A daily close above and the short-term uptrend is confirmed. Next resistance is at 22.29.
IF Just Eat closes below 16.21 this scenario is reversed.
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