As some supermarkets are booming, Ocado troubled as stock prices continues to slide.

Ocado shares currently trade at £6.71, 50% drop compared to only 6 months ago. From a technical perspective support now sits at the weekly lows of £6.15. A break below this support level could see the stock plummet much further, especially with the current inflation rates and a decline in consumer spending. MACD is neutral and RSI reads 33, suggesting the market is almost oversold and a break lower could take the share into oversold terriorty, causing a technical bouce. Further declines could take Ocado back towards £5.37, levles not seen since 2018. A potential long position could be created here if the support level holds. If the support holds, an uptrend would meet its first resistance level at £7.79. Followed by a further short-term resistance at £9.89, where potentially the upper Bollinger band matches this level. A break above the £9.89 level could create gradual signs of recovery for Ocado.

Comment "According to a 2022 study by Which.co.uk Ocado came in second as the most expensive weekly average basket price at £98.75. In comparison. Aldi came in the cheapest at £76.24. Over a 12-month period this works out to £1,170 more per household. And this is where the issue sits. In a cost-of-living crisis Ocado will certainly be losing market share and customers as this price difference is significant. Given that they only do online shopping as well, it is limiting the market audience. Therefore, the general outlook from a fundamental point is negative as well as a technical point as well".