Ocado share price experienced a massive jump on Tuesday after the company says that its sales of Marks & Spencer products topped sales from Waitrose goods (its previous partner), following the commencement of the partnership between both companies this month.
The news was announced today as the company provided a sales update and future guidance for its brand. Ocado’s revenues for the 3rd quarter stand at £587.3 million in the 13-week period that ended September 6, with projected earnings of £40 million, as a result of robust sales in the
3rd quarter. Sales grew 40.4% as customers switched from physical to online shopping, even as the coronavirus pandemic shows no signs of slowing.
The company has provided upbeat forward guidance, projecting to deliver strong full-year results. Ocado’s share price spiked nearly 6% on the news, but has pulled back slightly to record a 4.8% gain on the day as at the time of writing.
Technical Outlook for Ocado
Today’s spike takes Ocado’s shares above the 2440 resistance level. Another daily penetration close above that level confirms the breakout and sets Ocado on the path towards 2582. A break above 2582 puts the stock in record territory.
Conversely, lack of follow-through buying may provide for a retest of the 2440 price level. If it fails to hold above this level, we could see a breakdown with price now targeting the 2369 price level, with 2247 and 2180 lining up as additional support targets.
Ocado Daily Chart