Sainsbury's Share Price Endures 4th Losing Day After UBS Downgrade

Summary:

Sainsbury's share price hits a 4th day of losses after UBS downgrades its stock over lukewarm interest from Apollo in the company.

Sainsbury’s share price is on its way to the 4th day of losses, as the company continues to be hit with a dose of bad news. Several stores were shut after a man was caught injecting his blood into food items in three stores, one of which was a Sainsbury’s Local along Fulham Palace Road on Wednesday.

The Sainsbury share price had seen a 15% surge on Monday when interest from Apollo was first announced. Interest in the stock also waned after UBS investment bank downgraded it from a buy to neutral, following its interpretation of interest in the supermarket brand from Apollo as “exploratory”. UBS continues to maintain a price target of 300p, indicating that there is still room for further correction on the stock.

Sainsbury Share Price Outlook

The active daily candle is testing support at 312.3. A breakdown of this level allows the bears to aim for the 304.5 support, with 295.1 and 286.3 lining up as additional downside targets.

On the flip side, a successful defence of 312.3 could allow for a bounce that aims for 323.0. This keeps 340.0 as the potential target on the upside if the price advance continues from there. Only a clearance of 340.0 restores the uptrend on Sainsbury’s share price.