Ocado Surges to 4-Month Highs As Product Rebrand Excites Investors

Summary:

Ocado share price surges to 4-month highs after the company's rebranding efforts and the initiation of the Arizona fulfilment centre.

Ocado share price has surged to its highest levels in four months as it opens 1.3% higher this Monday. This surge is coming on the back of a major rebrand of the company’s website, images, and logos. The company says that this has been done to provide an “ownable identity” for the brand and set it apart from others. The major branding change has been the deployment of purple colour to replace the green colour it had used previously.

Ocado is also building on the momentum that has gathered as a result of the planned opening of a major fulfillment centre in Phoenix, Arizona. This centre is being set up in partnership with Kroger and will help to handle the logistics of its expanded online grocery offering to its US customers.

Technical Levels to Watch

If Ocado share price maintains its upside trajectory, it could attain the 2741 resistance as the initial target. If the advance continues, the 2818 price level becomes an additional target to the north, as does the late September 2020 highs at 2902.

On the flip side, a rejection at the 2741 resistance level could prompt a pullback which could retest the 2582 support. If this support is taken out, then 2513 and 2440 could become the next downside targets. 2360 is a support target that comes into the picture if 2440 is broken.