Ocado is trying to shore up the dwindling fortunes of its share price with an ambitious rebrand. Ocado, the world’s largest online grocery retailer, is set to launch its largest ad campaign ever, targeting social media, print media, as well as London Bus stickers with its new catchphrase, “there’s an Ocado Just for You”. The company has also introduced an extended product delivery range that spans fresh fish, fresh veggies, ice cream, and frozen foods.
Ocado is making sweeping changes as it seeks to regain the momentum it got from the COVID-19 lockdowns, which drove all shopping to online platforms and boosted its business. This momentum is fast fading as brick-and-mortar stores reopen, causing a steep fall in its share price from 2886 GBP on 27 January to as low as 1861 GBP on Friday.
Technical Outlook for Ocado
The breakdown of the bearish flag appears far from complete. However, there needs to be a breakdown of the 1898.0 support for the price to complete this move at 1800.00. The 1861.5 price mark (7 May low) is intervening support, with additional targets to the south also coming in at 1768.5 and 1700.00 (6 May 2020 low).
On the other hand, a corrective retracement to the north has to break above 1995.0 for price targets above 2000 to become accessible. 2077.5 is the immediate support target north of this psychological level, with 2135.0 and 2200.0 serving as additional resistance barriers that need to be overcome on the path to recovery.