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Ocado Share Price: Sentiment Remains Bearish Despite 4% Gain

The Ocado share price is seen pushing towards price levels last seen in 2019, as the impact of UK inflation on consumer spending impacts. This is despite the stock trading 4.75% higher as of writing. 

Despite the downside pressure faced by the Ocado share price, the company is pushing ahead with its plans to advance the reach of its one-hour delivery service, powered by Zoom. The marketing campaign, Ocado Zoom, will launch its first campaign from June to September 2022. The campaign is to launch on social media, digital display board and video-on-demand (VOD) channels. 

Whether this campaign will help the Ocado share price recover will be seen with time. The Ocado share price currently trades at one-quarter of its January 2021 highs when it rode high on pandemic lockdowns that forced UK shoppers to patronize online delivery and logistics platforms for shopping.

A return of traditional shopping habits following the phased lifting of the lockdowns forced the Ocado share price to lower. It has faced additional pressure from a rise in UK inflation, causing consumers to deploy cost-saving mechanisms in their shopping.

Ocado Share Price Outlook

The bulls need to extend the bounce momentum to send the stock toward the 886.2 resistance. If the advance takes out this barrier, the 939.4 resistance (1 June and 9 June highs) becomes the next target. The 25 April low at 997.0 and the 1074.0 resistance barrier (22 April high) form additional northbound targets that come into the picture of the upward correction persists.

On the flip side of the coin, a decline below the current support at 779.8 restores the downside bias and makes the 12 May low at 691.8 the immediate target to the south. Below this level, we also have pivots at 604.6 (13 March 2018 low) and the psychological support at 500.0 serving as additional targets to the south. Attainment of the 604.8 support covers the upside gap of 17 May 2018.

Ocado: Daily Chart