Ocado share price is under intense pressure ahead of the company’s annual reports scheduled for tomorrow morning. The shares are down by more than 1% today and are trading at 2,781, which is below the year-to-date high of 2,900p.
What’s happening: Last week, we received important corporate earnings from leading FTSE 100 companies like BP, Royal Dutch Shell, and Vodafone, among others. This week, several other companies will publish their earnings, with Ocado being the one to watch.
The company will be in the spotlight because it is viewed as a potential winner of the ongoing lockdowns. Obviously, with more people staying at home, there is hope that they are increasing their online shopping. Also, in the last quarter, we also know that the company’s joint venture partner, Marks and Spencer, reported revenue growth of about 35%. Still, investors will focus on the firm’s costs and outlook.
Ocado share price forecast
On the four-hour chart, we see that Ocado shares reached a high of 2,900p early this year. And in the past few weeks, the stock has struggled moving above this resistance. This performance is not by mistake. As you can see, the shares has formed a cup and handle pattern that is shown in green. And the current consolidation is part of the handle pattern.
Therefore, in the near term, the pair will likely remain at the current level and then bounce back higher. This prediction will be invalidated if the price moves below the support at 2,648p, which is the highest point in November.
Ocado technical chart