The Ocado share price continues to frustrate the bulls and is showing signs of turning lower. For now, the trend remains a friend of the bears.
Ocado Group plc (LON: OCDO) is trading at 1,817p, down 39.0p (-2.10%).
After dropping to a 14 month low at 1,719.50p following the recent warehouse fire, OCDO attempted to recover. However, after bouncing 10% since the 19th of July, the price is again faltering.
This year has not been kind to the Ocado share price. The grocery delivery firm has lost almost 37% in 2021. And with the UK consumer returning to pre-pandemic behaviour, the share price may be set to fall further.
the daily chart shows Ocado has been trending lower for the last 6 months. Furthermore, OCDO is below the 50, 100 and 200-day moving averages at 1,904p, 1991.80p and 2196.8p.
Additionally, trend line resistance is also seen at 2,021p which adds to the downside price pressure.
However, a descending trend line from September 2020 is offering support at 1,693p.
The Relative Strength Index shows signs of turning lower, as does the Moving Average Convergence Divergence (MACD) indicator.
Should the price lose the support at 1,693p, it becomes vulnerable to a deeper decline that targets the 2019 high of 1,440p.
The downtrend remains the dominant theme unless the price recovers above the moving averages and the trend line resistance. However, above 2,021p, the outlook improves dramatically and suggests an advance to the 200 DMA at 2,196p is possible.
Although considering the current momentum, the downside looks favourable for now.