The Ocado share price may be up on the day but is set to face significant headwinds after the company reported the first sales dip in a while, following the lifting of lockdowns in the UK. The latest sales data from Kantar shows that Ocado’s sales dipped 0.7% in the four weeks leading up to 8 August. However, its retention of 1.8% of total grocery sales was the same as last year’s figure. Sales also rose 44.4% when compared with 2019 data for the same period. Given that 2020 was a standout year, the statistics mean that investors did not react negatively by selling off the stock.
However, the Ocado share price is not out of the woods yet. Analysts at Barclays have opined that the Ocado share price is “excessively high,” despite the stock’s overvaluation not being as pronounced as before. The bank has cut the price target for the Ocado share price from 1,600p to 1,575p.
Ocado Share Price Outlook
Following the breakdown of the channel on the daily chart in April, the drop in the Ocado share price value has been consistent. However, price action is now range-bound. The high of the active candle is testing the ceiling of this range at 1825.5. If there is a breakout, 1861.5 becomes the next target. Above this level, 1898.0 and 1995.0 become the additional targets to the north.
On the other hand, a breakdown of the floor of this range at 1768.5 opens the door towards 1700.00. A further decline brings in 1660.0 and 1558.0 as the additional downside targets.