Jump to content

Ocado share price close to major support ahead of Q1 trading statement


Recommended Posts

Ocado is looking for support above the 1,000p mark as it signs a deal with Auchan in Poland, drops “best before” labels on some UK fruit and vegetables and enters a court battle over a patent infringement dispute with Autosave.

bg_ocado_689798.JPGSource: Bloomberg
 Axel Rudolph | Market Analyst, London | Publication date: Tuesday 15 March 2022 

Online grocery business, Ocado has signed an exclusive deal with Auchan to build a fulfilment centre in Poland to serve the Warsaw area by 2024 with the French supermarket giant allowed to use its technology across Auchan stores in the country, having already made a similar deal with the company’s Alcampo brand in Spain last year.

Under the terms of the deal, Ocado will be paid certain fees upfront from Auchan Poland during the construction of the Warsaw warehouse with ongoing fees after completion being linked to criteria such as sales targets.

This week Ocado also announced that it intends to axe “best before” labels on some fruit and vegetables in the UK in an effort to reduce food waste.

Meanwhile the UK-listed firm is going to the High Court in London with the Norwegian robotics firm, Autostore over a patent infringement dispute. The two innovative companies are facing off in multiple jurisdictions around the world to protect their intellectual property in warehouse storage technology. Ocado, like its competitor Autostore, licences its technology and uses it for its British grocery delivery service.

The UK grocery company scored a significant win when it won the latest round of litigation in the United States, where the International Trade Commission affirmed a December ruling that Autostore’s patent claims against Ocado were either invalid or not infringed. The Norwegian pioneering company plans to appeal the ruling in the US Court of Appeals, though.

On Thursday, Ocado will publish its first quarter (Q1) trading statement which is expected to have an impact on the company’s share price which last week managed to hold marginally above key long-term technical support, having previously slipped by over 60% from its February 2021 peak.

15032022_OCDO-Weekly.pngSource: ProRealTime

 

This major technical support zone is comprised of the November 2019, February and March 2020 lows at 1,054 to 996 pence.

Provided that it continues to underpin, a retest of the November to March downtrend line is on the cards since the current March low at 1,061 has been accompanied by positive divergence on the daily RSI.

Last week it thwarted an attempt of a rally at 1,322 pence.

15032022_OCDO-Daily.pngSource: ProRealTime

 

The next higher early March high at 1,390 will need to be exceeded, for a bottom to be formed and for the key 1,546p to 1,626p resistance area to be reached. It contains the October, December lows and the late January-to-February highs and as such should prove to be difficult to overcome, if reached at all.

Failure at major support at 996p would engage the October 2018 low at 731p.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,245
    • Total Posts
      90,848
    • Total Members
      41,346
    • Most Online
      7,522
      10/06/21 11:53

    Newest Member
    Whytie1
    Joined 03/02/23 14:20
  • Posts

    • Breaking News - US NFPs Surge to 517k vs 185k Expectations, Unemployment Rate Falls to 3.4% Feb 3, 2023 | DailyFX Nick Cawley, Senior Strategist Source: Bloomberg   US DOLLAR (DXY) PRICE AND CHART ANALYSIS US NFPs smash expectations in January. US dollar picks up a bid. Total nonfarm payroll employment increased by 517k in January, and the unemployment rate fell to 3.4% according to the US Bureau of Labor Statistics. Hourly earnings also beat expectations. Last month’s NFP figure was also revised higher from 223k to 260k. ‘ Job growth was widespread in January, led by gains in leisure and hospitality, professional and business services, and health care. Employment also increased in government, partially reflecting the return of workers from a strike.’     The Federal Reserve hiked interest rates by 25 basis points at this Wednesday's FOMC meeting, a move fully expected, and priced in by the market. Fed chair Powell, while continuing to stress that further rises are data dependent, added a new word to his FOMC vocabulary, disinflation, sending the US dollar lower and risk markets sharply higher. Powell said that it is a ‘good thing that disinflation so far has not come at expense of labor market’, adding that ‘this disinflationary period is in early stages’. While chair Powell will still keep tightening monetary policy to break the back of inflation, financial markets are now pricing in just one more 25bp rate hike at the March meeting before a pause in Q2 and Q3, while rate cuts are now seen in Q4. FOMC Hikes Rates 25 bps as Expected, Leaves Open Further Hike Expectations The US dollar (DXY) picked up a bid post-release rising around 60 cents to 101.90 US DOLLAR (DXY) DAILY PRICE CHART – FEBRUARY 3, 2023     What is your view on the US Dollar – bullish or bearish?
    • Special Coverage of the Non-Farm Payrolls pre-market release with Angeline One & Josh Mahoney.  
    • EUR/USD, GBP/USD and USD/JPY head lower after central bank volatility This week has seen risk-off sentiment dominate the FX market, with EUR/USD and GBP/USD falling back towards Fibonacci support. Meanwhile, the USD/JPY downtrend looks to finally kick in once again.  Joshua Mahony | Senior Market Analyst, London | Publication date: Friday 03 February 2023  EUR/USD turns higher from Fibonacci support EUR/USD has managed to maintain its consistent uptrend despite the central bank fuelled volatility seen over the course of this week. Today brings a final hurdle to overcome in the form of the US jobs report, with the last pullback bringing a potentially advantageous location to look for longs in EUR/USD. With the price having dropped into a deep Fibonacci retracement level over the course of the past 24 hours, this is a notable area where the bulls could come back in to maintain the bullish trend. With that in mind, long positions remain in favour unless we see the price fall back below the $1.0802 swing low. Source: ProRealTime GBP/USD reverses back towards Fibonacci support GBP/USD has been hit hard over the past 24 hours, with the pound particularly coming under pressure in the back end of this week. While that decline has been relatively convincing in terms of momentum, the wider bullish trend remains in play. The pullback into the 76.4% Fibonacci support level of $1.2172 highlights the potential for a bullish turnaround from here. As such, keep an eye out for how the pair respects this Fibonacci level, with a break below that point signalling the potential for a continuation of this decline towards the key $1.2086. Meanwhile, watch out for a move up through the 80 threshold on the stochastic oscillator as a signal that the bulls are coming back into dominance. Source: ProRealTime USD/JPY breakdown points towards further downside USD/JPY has finally given way after a period of consolidation that took the price up towards trendline resistance. The ability to maintain that wider bearish trend brought expectations of another leg lower, which appears to be in the offing. The decline through $1.2902 support brings an end to the recent trend of higher lows seen earlier this week. As such, we appear to have set in motion a potential fresh bearish phase, with a negative outlook holding as long as the price does not rise up through the $1.3055 resistance level established on Monday. Until that happens, the bears look likely to remain in charge. Source: ProRealTime
×
×
  • Create New...