The Diageo share price could make new highs after investment bank Deutsche set a target price of 4,470p for the company’s stock. This leaves the Diageo share price at least 10% room to navigate to the upside, following a recent support bounce.
The upgrade from Deutsche Bank comes as several analysts have affirmed a “Buy” rating for this stock. The ADR shares trading on the US stock market is also approaching 52-week highs as investors step up demand for the stock.
Diageo’s share price is seeing H2 recovery after the reopening of bars and restaurants worldwide from pandemic-induced closures has led to a return of demand for its products. As of writing, the stock is up 0.95%.
Diageo Share Price Outlook
The attempted breakdown of the ascending trendline met a support barrier at 3857.5, forcing a return to the upside. This advance move is now testing a recent resistance at 3926.5 (200% Fibonacci extension from the 13 August to 20 September price swing. A break above this level retests the recent YTD highs at 3950.0.
Conversely, a pullback from the 3926.5 resistance retests support at 3857.5. Only a breakdown of this pivot allows the price to aim for the 3827.5 downside barrier. Subsequent milestones to the south are found at 3800.00 and the 10 November low at 3735.5.
Diageo: Daily Chart
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