UK fast food and bakery chain Greggs Plc says it has started feeling the impact of supply chain disruptions plaguing the UK’s retail and food industries. This situation has forced investors to back away from the stock on the day, sending the Greggs share price action to the downside.
A spokesman for the company said the chain has seen temporary supply interruptions in some of its ingredients, resulting in an inability to maintain the full availability of product lines.
A shortage of truck drivers in the UK due to the Brexit-related exit of Eastern European truck drivers has led to shortages of food items and ingredients for groceries, supermarkets and retail outlets across the UK. There have been calls for the UK government to offer tens of thousands of bridging visas to get the truck drivers back until local uptake filled the vacancies.
Greggs Share Price Prediction
The Greggs share price was rejected at the 3050 price mark (141.4% Fibonacci extension level), with a slight pullback on the day. This situation has formed a bearish harami and requires a bearish outside day candle with a lower close than the August 23/24 candles to usher in a run towards the 2902 support level (August 20 low). Also worthy of note is the evolving rising wedge pattern, with the point of convergence very close to the current resistance. However, confirmation of a reversal has to follow a breakdown of both the 2817 and 2693 support levels. The lower border of the channel has to give way as well.
On the flip side, the bulls need to see a break of 3050 to usher in new highs. If this occurs, Greggs share price has clear skies to aim for the 3200 (161.8% Fibonacci extension level) mark.