Ocado share price was in the red earlier on Tuesday ahead of Jerome Powell’s speech later that day. At the time of writing, the OCDO stock price had edged 1.94% lower to 728.8p. The stock has been on a rally since the start of the year, rising by more than 16% in 2023.
The Ocado stock has been among the top movers in the FTSE 100 index and the best-performing stocks in the European stock market. Ocado Group Plc engages in the operation of an online grocery supermarket. The firm’s online supermarket, Ocado Retail, is operated through a joint venture with UK retailer Marks and Spencer.
Other than retail, the firm operates through other segments like UK Solutions and Logistics, and International Solutions, under Ocado Solutions. In this segment, the company provides automated warehousing solutions to companies all over the world.
Ocado share price has been under intense pressure amid a gloomy economic outlook in the UK and struggles in the e-commerce sector. Inflation in the UK has been hovering above its highest level in more than four decades.
UK grocery retail sales in the four weeks to December rose by 10.9%. However, the growth was driven by price inflation rather than increased purchasing.
Mike Watkins, NielsenIQ’s UK head of retailer and business insight said.
“We also expect the recession to start influencing shopper behavior and reframe overall retail spend,”
Ocado Share Price Forecast
The daily chart shows that the Ocado share price has been on a rally for the past week before shedding some of its gains in Tuesday’s trade. The stock has managed to move above the 25-day and 50-day moving averages, while its Relative Strength Index (RSI) has slipped into the neutral zone.
Therefore, while the economic outlook remains gloomy, the Ocado share price is likely to be bearish in the next few months. However, the bearish view will be invalidated by a flip above the important resistance level at 757p.