Ocado share price has been on a downward trajectory for the past week, dipping more than 13%. At the time of writing, the OCDO stock was trading 4.75% lower at 650p. Ocado was among the worst performers in the London Stock Exchange and FTSE 100 index on Tuesday.

Underperformer

Ocado share price has been in the red for the past few weeks after posting a slip in its full-year revenue for 2022. The online grocery supermarket has been struggling with a slowdown in post-pandemic e-commerce spending and consumers’ return to physical stores.

Recently, the Ocado Group Plc said that its UK retail business inched higher towards the end of 2022 but failed to match the growth rates at mainstream supermarkets. According to the British online grocer, it expects earnings from its joint venture with Marks and Spencer to plummet in the first half of fiscal 2023.

Ocado’s shares have been trading below pre-pandemic levels, dragging the benchmark FTSE index. Just like other mainstream grocers in the UK, Ocado has been combating higher costs for energy and labor. The stock was the worst performer in the FTSE 100 index in 2022.

Ocado Share Price Forecast

Ocado share price has been on a steep decline in the past week, as shown on the daily chart. The stock has slipped below the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) has moved lower to the neutral zone. Therefore, I expect the stock to continue falling as sellers eye the support level at 520p. However, a move past the resistance level at 803p will invalidate my bearish thesis.