The Deliveroo share price continues to slide in the market ahead of the Christmas holiday period, as investors abandon the stock in droves following the EU ruling on the gig economy workers that service the company’s clients.
Deliveroo ought to have been riding the wave of the new restrictions imposed by the governments in the UK and Europe as a result of the Omicron variant, as more holiday shoppers use logistics services to get their holiday presents and groceries around. However, the EU ruling that mandates companies like Deliveroo to confer the so-called independent contractors with full employment status has left investors worried about the cost implications of the ruling to company profits.
The Deliveroo share price is only marginally higher by 1.98% on the day, coming on the back of five straight days of losses. The stock still faces downward pressure as the recovery move of the day is muted.
Deliveroo Share Price Outlook
The Deliveroo share price decline has taken out the support at 230.6, following a rejection of the recovery move at the 247.2 resistance. This scenario means that 192.8 appears to be the new target to the south, being the 100% extension level from the swing high of 18 August to the swing low of 13 October. Additional downside targets include 156.1 and 137.0, being the 127.2% and 141.4% Fibonacci extension levels.
On the other hand, the bulls need to force a recovery beyond 247.2 to change the sentiment on the asset. This may open an opportunity for the price to push towards 262.4, leaving 274.9 and 290.9 as additional upside targets.