Ocado has started the week on a cautious note, even as it confirms a new commencement date for its new Chief Financial Officer, Stephen Daintith. Daitntith, who was previously at Dow Jones and News International, resumes on March 22. He will be taking over from Duncan Tatton-Brown, who is stepping down for family reasons.
Daintith joins Ocado at a time when the company is struggling to build on its lockdown gains of 2020, as a recent survey shows that Ocado’s digital experience with shoppers is among the worst of major supermarkets. Less than one-third of shoppers said they found the online shopping experience with Ocado good, which could be a major blow to the company’s efforts at sustaining its 2020 performance. This is especially so as the UK economy could soon reopen, leaving UK shoppers with the choice of returning to their old shopping sprees in brick and mortar grocery shops.
Technical Levels to Watch
Ocado was able to violate the resistance zone located at 2582-2606 on Friday, February 12 and looks on course to confirm he breakout with a higher close today. However, this move requires additional buying momentum if the next resistance target at 2741 is to be achieved. 2818 and 2902 remain the upside barriers to Ocado storming towards new highs.
On the flip side, a rejection at 2741 or any other barrier before 2902 indicates a progressive lowering of price peaks, which could indicate a stall in the uptrend. In such a situation, a breakdown of the 2513 support sets up a 1-2-3 reversal pattern, which could open the door towards 2440, 2360 or even 2247, in that order.
Ocado Daily Chart