The Morrisons share price spiked after the company reported its first quarter results. The MRW shares are trading at 184.75p, which is 7.45% above April’s low of 172p.
What happened: Morrisons, the fourth-biggest supermarket chain in the United Kingdom, reported relatively strong first quarter results. The firm’s total sales rose by 5.3% in the quarter. Excluding fuels, the sales rose by 2.7%. This growth was mostly because of the online division, which rose by 113%. Wholesale revenue rose by 21%. The firm also expects to reach its target of reducing debt and growing profit to more than 431 million pounds. The CEO said:
“We’re looking to the future with confidence as we see the growing warmth and affection for Morrisons from our customers flow into every area of the business. Our increasingly special butchers, bakers, fishmongers and other food makers are helping to brighten shopping trips”
In general, Morrisons and other UK chains like Tesco and Sainsbury have benefited from the pandemic. It has helped these companies increase their pivot to e-commerce. Also, stockpiling has helped grow their volume. Still, there are concerns about whether this growth will continue after the country fully reopens.
Morrisons share price forecast
The hourly chart shows that the Morrisons share price has bounced back today. It is a few points below 186, which was the highest level in April. It has already moved above the important resistance level at 184.50 and the 25-day and 50-day moving averages. The shares have formed what looks like a V-shaped pattern.
Therefore, in the near term, I suspect that the momentum will continue as bulls target the April high of 186. However, since this V-shape is similar to a cup and handle, a short pullback or consolidation cannot be ruled out soon.