Sainsbury’s Share Price Forecast: SBRY Starts 2023 Strong

Summary:
• Sainsbury's share price has been in a constant uptrend since the start of the year. Price has gained 20% in 2023 so far.

After a brief dip in the holiday season, Sainsbury’s share price has been in a constant uptrend. Since the start of 2023, the price has gained 20% till now. The company announced record sales during the Christmas season which could be one reason behind the ongoing price rally.

J Sainsbury pl is the second biggest superstore chain across the whole UK. As of September 2022, the company currently holds 14.6% share in the United Kingdom. The company’s stock is listed in London Stock Exchange under the ticker symbol SBRY.

According to recent Sainsbury news, the company has banned the top Vape brand Elf Vape nationwide. The brand which launched in 2021currently accounts for 2/3 of the disposable vape sales. Morrisons has also issued a similar ban on the brand. The reason behind this sudden ban is the higher-than-allowed nicotine level in Elf Vape’s products.

This was after a recent investigation found that the watermelon Vape of the company had 50% more nicotine than the legally allowed limit. In other news, Bestway Group has recently bought a stake in J Sainsbury plc, giving rise to takeover speculations. The convenience store operator has bought 3.45% stake.

Sainsbury’s Price Chart Daily

The Sainsbury share price chart shows massive gains since its October 2022 low of £169. At the time of writing, SBRY is trading at £264.9. This price level lies exactly between 0.5 and 0.628 fib retracement level and also has acted as a resistance in the past. If Sainsbury’s share price wants to attempt a retest of the 2021 high of £342 then the most significant level to reclaim is the £275 level.

This level is 0.618 fib retracement level and can act as a major resistance for an ongoing price rally. If the SBRY price drops below $265, then I expect a correction till £220-£222 level. This level has acted as strong resistance in the past and the price needs to flip into resistance before aiming for further upside.

Another confluence at this level is the 0.5 fib level of the current uptrend that connects the October 2022 bottom to the recent peak of £270. The 200-day moving average also lies around this level at £217.5.