Ocado share priceis down by almost 1% today, becoming the third-worst performing stock in the FTSE 100 after Bunzl and HSBC. The shares, which are trading at £2,210, are in their second consecutive day in the red.
What happened: There’s no major company-related news that’s pushing Ocado’s shares lower. Instead, investors are possibly reacting to the lower inflation data from the United Kingdom. In a report by the ONS, consumer prices declined by 0.1% in November from the previous 0.0%. That pushed the annual increase to 0.3%.
In the same month, the core CPI fell by 0.1% leading to an annualised increase of 0.2%. The rate of inflation will remain low as the country battles the continuing wave of the virus.
What else? As we wrote last week, Ocado share price is possibly reacting to the rising worries about higher costs as the firm continues to invest for growth. This is despite the fact the company boosted its forward guidance. It expects that its net income will be more than £70 million this year. That’s higher than the previous guidance of £60 million.
The company’s share price is also possibly because of the decision by the UK government to put more restrictive measures ahead of Christmas.
Ocado share price technical analysis
What next for Ocado? On the daily chart, we see that Ocado share price has been in a tight range recently. It remains between the important support and resistance at 2,124p and 2,365p, respectively.
It is also between the 23.6% and 38.2% Fibonacci retracement levels. Therefore, for today, I suspect that the shares will remain in the current range before breaking out lower than 2,124p in the near term.