Ocado share price has been on a strong bearish run for the past month as economic concerns weigh heavily on stock markets. The stock has crashed by nearly 8% in the past week and more than 16% in the past month. It ended its previous trading session on Friday 4.61% lower at 629.6p.
Why is Ocado Slipping?
Ocado Group is a British business that licenses grocery technology. The company owns 50% of Ocado.com, an e-commerce business, which operates in a joint venture with Marks and Spencer. The company also owns Ocado Solutions which provides automated warehousing solutions to companies all over the world.
Ocado share price has been under intense pressure for the past few weeks as economic concerns grow. Earlier this month, Ocado told investors that it would put brakes on its expansion in the UK amid a pullback in demand for online grocery delivery.
Concerns about slow growth and lack of profitability have also intensified. This has seen the stock fallout of favor among investors. The stock has dipped by more than 62% in price YTD and is not likely to recover soon.
Ocado share price retreated earlier on Friday after the release of UK retail sales numbers for November. According to data published by the Office for National Statistics, retail sales volumes fell by 0.4% in November this year. Predominant online retail sales volumes fell by 2.8% that month.
Ocado Share Price Forecast
On the daily chart, the Ocado share price has been on a strong bear run for the past few months. It is moving below and slightly above the 25-day and 50-day moving averages, respectively. Its Relative Strength Index (RSI) is neutral at 51. Therefore, the Ocado stock price is likely to continue falling in the short term. If this happens, sellers will be eyeing the next support level at 467p. However, a move past the resistance at 835p will invalidate this view.