Ocado share price is down by more than 2% becoming one of the worst-performers in the FTSE 100 index. The stock is trading at 2,346p, which is relatively lower than yesterday’s highest point of 2,435p.
What happened: Ocado had a relatively successful holiday, according to the latest figures by Kantar. In total, the online grocery juggernaut ended the year as the fastest-growing firm in the sector. In total, its sales rose by 36.5% during the 12 weeks to December 27. Ocado was followed by Iceland, Lidl, Morrisons and Waitrose. Tesco came a distant sixth. In the report, Kantar said:
“Ocado’s impressive growth has come despite only selling to less than 3pc of households and is driven by the loyalty of its customers, who buy more than half their groceries through the retailer.”
Why is Ocado share price falling: Ocado shares are falling today partly because of the rising worries about the company’s growth this year. Also, investors are worrying about the company’s rising costs, which could affect its profitability. Further, while the current lockdown is a good thing for Ocado, analysts are worried about its impact on the overall retail spending.
What next for Ocado?
On the daily chart, we see that Ocado share price has been moving sideways in the past few weeks. Indeed, yesterday, the share price managed to move above the upper side of the red channel.
Today, the price is trading along the upper side of this channel. It remains above the 25-day and 50-day moving averages. Therefore, the shares will likely continue rising as bulls aim for the next resistance level at 2,643p, which is the highest level on November 9.
Ocado Shares Technical Chart
