Ocado Share Price Analysis: Caution is Justified

Ocado share price has staged a strong recovery in the past week amid signs that the company’s outlook could be improving. The company’s shares have jumped by more than 22% in the past week, rising above their 52-week low. The OCDO stock price has gained more than 9% in the past month but remains 28.54% lower in the year to date. The company’s total market cap is currently at £3.512 billion.


Ocado share price has been on an upside correction for the past week as investors ramp up bets of the online supermarket rebounding. Ocado Group Plc engages in the operation of online grocery supermarkets. The company operates through three segments, including Retail, UK Solutions & Logistics, and International Solutions.

Ocado’s profits surged to record highs during the pandemic period as most customers preferred home deliveries on the back of the high risk of infections and mandatory lockdowns. However, with the situation almost back to normal and customers returning to physical stores, Ocado has seen its profits decline over time.

However, Ocado share price seems to be improving in the past week after a stockbroker raised its rating on the company. BNP Paribas Exane, a French financial company, told its clients the FTSE 100 online supermarket’s outlook and market sentiment are much better aligned. The stockbroker raised its rating to ‘neutral’ and increased its target price by 3% to 365p.

Despite hopes of the company improving, Ocado has a long way to go. The Ocado stock has lost more than 46% of its value in the past year and more than 32% in the past six months. The British online supermarket narrowly missed relegation from the UK’s blue chip FTSE 100 index in its latest reshuffle. As such, Ocado’s outlook remains challenging to predict.

Ocado Share Price Technical Analysis

Ocado share price has been on a bullish trajectory for the past few days amid hopes by investors. At press time, Ocado share price was trading 3.28% higher at 444.1p, slightly above the critical support level of 440p. On the daily chart, the stock has managed to move above the 25-day moving average but remains slightly below the 50 DMA. Its Relative Strength Index (RSI) has rocketed to 60, hinting at an increase in buying pressure.

Consequently, I expect the Ocado share price to continue its upside correction in the ensuing sessions. A move past the 50-day moving average at 450p will have bulls eyeing the next resistance levels at 465p and 500p. On the other hand, a move below the 25 DMA at 396p will invalidate the cautiously bullish thesis.

OCDO Price Chart

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