The Morrisons’ share price continues to trade off its recent highs as its takeover saga slides towards a conclusion. At a court meeting on the CD&R offer, the company recommended that shareholders vote in favour of CD&R. The implementation of the final offer on the takover bid comes after the court meeting and shareholders’ general meeting on 19 October.
The meeting comes as Morrisons received recognition on several fronts. The company received the 2021 Grocer of the Year at the Grocer Gold Awards, marking the second time the supermarket chain grabbed this award in 10 years. The company had only recently received the Supermarket of the Year award at the Retail Industry Awards.
The stock continues to trade in low volumes after opening with a bearish gap on Wednesday. Thursday’s price action is not much changed. The bearish gap has broken the 287.6 support level, following the bearish divergence setup on the 4-hour chart. However, bears would need additional momentum to carry the stock to the 270.2 support. 257.3, and 249.9 are other targets to the south that are presently out of reach.
On the flip side, a break above 297.2 is required to restore the uptrend on the stock. In this situation, 307.7 would be the next logical target if the 297.2 resistance is uncapped.