Ocado

Ocado Share Price is Being Pressured – What Next?

The Ocado share price slipped today as investors digested the latest rankings by Which, the consumer advocacy group. The shares are trading at 2,445[p, which is slightly above the intraday low of 2,355p. This was the lowest it has been since January 8 this year.

What happened: In a report released by Which, the consumer said that a lack of delivery slots dragged the company’s ratings from its customers. In the survey, customers saud that they had struggled to secure delivery slots from the company. It dropped to position five in a ranking that was led by Aldi, the discount company. It tied with Waitrose and Morrisons. Sainsbury was the highest-scoring in terms of online supermarkets.

The survey comes at a time when some analysts are questioning the performance of the Ocado share price. In a recent report, Barrons said that while the company had recorded a 35% growth, it is a relatively smaller pace than the overall 87% growth of online commerce. An analyst interviews for the report said:

Advertisement

“It is clear Ocado has failed to keep pace with the likes of Tesco, Sainsbury’s and Waitrose over the course of the year. This largely stems from its inability to meet the boom in demand the way its supermarket rivals have been able to, i.e. through rapid escalation of in-store picking services for online fulfillment.”

Ocado share price forecast

The Ocado share price dropped to a low of 2,355p today. On the four-hour chart, this price was slightly below the 61.8% Fibonacci retracement level. It has also formed a gap on the four-hour chart. Also, it remains below the 25-day and 15-day moving averages. Therefore, the shares will likely remain under pressure in the near term. There is also a possibility that it will retest the 78.6% retracement level at 2,290p.

Don’t miss a beat! Follow us on Telegram and Twitter.

Ocado shares chart

Ocado share price

More content

Related Posts: