Ocado share price has resumed the downward move after two recovery sessions, as the UK continues to expand its vaccination campaigns and reopen the economy. Ocado was one of the big gainers during the 2020 lockdowns at the peak of the first phase of the pandemic, due to a switch in consumer shopping destinations to online grocery portals.
However, the stock of the company has been nosediving, as the reopening of the economy has allowed brick and mortar grocery shops to take back customers lost to Ocado’s enterprise clients.
Ocado is in the middle of a major rebranding campaign, ditching its traditional green logos for a grape-colored (purple) design. It is also planning to cut down heavily on its plastic generation in the course of its work. Ocado is down 3.88% on the day.
Today’s bearish candle could form a bearish engulfing pattern if combined with Tuesday’s candle, and this could have bearish implications for the price action. Bears would be looking for a breakdown of the rising trendline to open the door towards 2078 and 1995. Only a decline below 1995 would establish the lower lows required for the continuation of the downtrend for Ocado. 1898 would then become a logical target.
On the flip side, bulls need the price to close above 2135 to negate the bearish engulfing formation. This would also create a chance for a bounce towards 2200. Further price extension beyond 2247 is required for a bullish reversal to be established.
