Ocado (LON: OCDO) share price has been in a tailspin since the start of the year. The shares are currently trading at 36% below the year open. This also marks the lowest level for the shares of British retailer since October 2022. The latest analysis reveals that the bulls are running out of time.
On Friday, UK shares remained sideways, which was also reflected in the FTSE 100 index. The benchmark index was trading near its previous close till the time of press. Ocado share price also remained sideways. The stock now has had eight losing days in the last nine trading sessions.
The buying of any company share by its insiders is logically a bullish sign. It has been seen in the past 12 months that the insiders have been the net positive buyers of LON: OCDO. This shows the faith of the insiders in the company who might be anticipating growth.
The biggest insider buying came from the Independent Non-Executive Director Jorn Rausing, who bought UK£4.7m worth of shares at the Ocado share price of £6.68. This was almost 70% above the current price. This suggests that Jorn considered the stock to be undervalued at £6.68.
Technical analysis of the LON: OCDO chart reveals that the price has been respecting two trendlines on the daily timeframe. One is the downward trendline which acts as a resistance, and the other is the horizontal line at the bottom which acts as a support.
Currently, the shares are piercing through the support, which may make the Ocado share price forecast very bearish. There is also a possibility of another bounce from this level, but the bulls are nowhere to be seen. Therefore, the bearish scenario looks to be the most likely one. In case of a breakdown, bears may target £2.32.
I’ll keep sharing my updated outlook on Ocado shares in my free Telegram group, which you’re welcome to join.
This post was last modified on May 19, 2023, 17:36 BST 17:36