Sainsbury’s share price is currently trading lower in a day of muted trading, as have most of the UK supermarket stocks.
Attention on Sainsbury’s this morning is on the company’s decision to start charging a fee on the use of air machines to pump tyres at its UK supermarkets. This service used to be offered for free but will now attract a 30p charge on any three minutes of air pumping activity. Free water for screenwash will also attract a fee of £1.
As can be imagined, motorists in the UK are not pleased. Sun Newspaper and Birmingham Live have interviewed several of these motorists, and the general feeling is that of anger at the company’s decision.
It is unlikely that this decision will have a major impact on Sainsbury’s share price, down by 0.51% today.
The price action continues to trade around the 295.1 support level. If this support holds up and there is a bounce here, there could be a run towards 304.5. The 312.3 and 323.0 resistance barriers become available for the bulls if the price can remove the 304.5 resistance barrier.
Conversely, a breakdown of the 295.1 support allows the 286.3 pivot to come into view. If the price action can break down the ascending trendline, this provides an opportunity for the bears to aim for new lows at 276.2 and 269.5.
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