The eighth day of advance has seen the Ocado share price add another 3.22%, catapulting the stock to the top of the gainers’ chart on the FTSE 100. This move comes as investors continue to snap up the stock in response to former Amazon VP and AI/robotics expert Nadia Shouraboura’s appointment on the company’s board.
Ocado’s recent performance has boosted the recovery in the stock after the easing of lockdowns allowed shoppers to return to old shopping habits, shunning online delivery companies like Ocado. Ocado is looking to deepen its use of technology in its business processes and are looking towards Shouraboura’s expertise in robotics and AI to get this done.
The 2077.5 resistance appears ready for the taking, but Ocado has to surmount this level for 2135.0 to become a legitimate upside target. Above this level, 2238.0 waits in the wings to make its presence felt.
On the other hand, rejection and a pullback from 2077.5 could allow for a retest of 1995.0, with 1898.0 and 1861.5 serving as additional downside targets. This outlook showcases the expectation of a correction from point D in the XABCD butterfly pattern.
Follow Eno on Twitter.