Ocado Rallies As Online Grocery Sales Surge

Ocado trade sharply higher today boosted by an industry report that the online grocery sales surged in the last month, as the coronavirus lockdown has changed the shopping habits.

In the 12 weeks to June 14, take-home sales increased 13.7% year-on-year, while in the last four-week period, sales growth was 18.9%. Online shopping, saw total sales spike 91%; nearly one in five Britons shopped over the internet.

Ocado reached the biggest-ever market share, hitting 1.7% over the last 12 weeks following industry sales growth of 42.2%. Online grocers and convenience stores took a total of £1.6bn.

Ocado earlier in the month raised £1 billion to capitalize on the rapid change in online grocery shopping habits sparked by the COVID-19 outbreak.

Ocado raised £657 million via an equity placement and £350 million through a debt issue of senior unsecured bonds. The funds will help Ocado to expand the online sales operation and the production of robot factories for online supermarkets.

Ocado will release the half-year results on July 14, 2020.

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Ocado Daily Technical Analysis

Ocado is 2.56% higher today at £2039 as the positive momentum drives the stock price to higher levels. Ocado share has gained over 103% since the March lows. The share started a correction from the June 2 highs which at least for now has stalled around the 2,000 mark. The technical picture is bullish for the Ocado share, and only a break below the 50-day moving average might cancel the bullish momentum. 

On the upside, first resistance for Ocado is at 2049 the daily high. The next supply zone will be met at 2068 the high from June 23. More offers would emerge at 2101 the high from June 10.

On the flip side, the initial support for the Ocado share stands at 1984, the daily low. Next support will be met at 1937 the low from yesterday’s trading session. The 50-day moving average will provide further support in 1910.

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