The Just Eat Takeaway share price has suffered a steep intraday selloff, as the company’s shares face delisting from the FTSE 100.
A review by FTSE Russell, which decides on the eligibility of firms staying on the UK’s blue-chip index, has ruled that the company is not a British company by a Dutch company, rendering it ineligible for listing on the FTSE100. In 2020, the company merged with Takeaway.com, a Dutch enterprise. It also entered the US market (where it is listed on the Nasdaq 100 as GRUB) following the acquisition of Grubhub in June.
Only after the market close on 1 September will this recommendation be approved or rejected. However, investors do not seem patient enough to wait for the decision and are dumping the stock in droves. The Just Eat Takeaway share price is down 6.06% as of writing, to top the losers’ chart on the FTSE100.
Just Eat Takeaway Price Prediction
Our last analysis of this asset pointed to the formation of a butterfly harmonic pattern on the daily chart, with a Just Eat Takeaway price prediction of a potential slump if point D was planted at the 6932 resistance. With the Just Eat Takeaway price stalling at 6932 for several days before Friday’s selloff, the harmonic pattern is now complete. The bearish action has violated support at 6619. A total breakdown of this location allows 6018 to come into the picture, with 5748 also lining up as a potential downside target.
Bulls would require a recovery above 6932 to restore the upside recovery, targeting 7246 and 7516 as immediate targets.