Ocado share price has been on a strong bullish run for the past two weeks, gaining more than 90%. The OCDO stock has been among the best performers in the FTSE 100 index. The company’s total market capitalization has jumped to 6.6 billion pounds. The stock closed its earlier trading session on Monday 13.99% higher at 925.6p.
Catalysts Behind OCDO’s Rally
Ocado Group is a British business that licenses grocery technology. It owns 50% of Ocado.com which is a British online supermarket. In 2020, Ocado launched a joint venture with Marks and Spencer who own the other 50% of Ocado.com. The company’s main competitors include Tesco, Sainsbury’s, Morrisons, and Waitrose.
Ocado share price has been in the spotlight for the past few weeks as the stock made a strong comeback driven by several catalysts. First, a weak sterling pound boosted the FTSE 100 index as traders braced for the government’s fiscal statement scheduled for Wednesday. The US dollar has been weighing on the British pound.
Second, the company’s entrance into the South Korean market contributed to the current price surge. Earlier this month, Ocado announced its first major deal since 2019, to supply retail technology for one of South Korea’s largest companies.
According to the British online retailer, the company plans to help Lotte Shopping develop its online business. It will also help in building a network of warehouses with advanced storage and automated picking systems to fulfill customer orders.
Therefore, Ocado share price is likely to extend its gains to the next month. As such, European markets are mixed ahead of the UK inflation data to be released on Wednesday. Analysts forecast an increase in the CPI for October to 10.7% YoY up from 10.1% in September.
Ocado Share Price Forecast
The daily chart shows that Ocado share price has been on a strong bullish trajectory since the start of the month. The stock has managed to move above the 50-day and 100-day exponential moving averages. Its Relative Strength Index (RSI) is at 61.
The OCDO stock is likely to continue with its bullish trend as bulls gather momentum to push the price past the resistance at 1350p. On the flipside, a bearish run will have the bears eyeing the critical support at 390p.