A share on its way back up

TL;DR

Ocado's share price shows signs of reversal with support from a fibonacci retracement and a strong internal trend line. The FTSE is likely to experience a downward trend based on Elliott Wave analysis.

Transcript

hello it's john burford with chart of the week for monday the 26th of july and i'm covering ocado today this is a the leader in fact of the robotic warehouse online grocery fulfillment sector a bit of a mouthful isn't it but i think you get the idea it uses robots to move around its warehouse spaces and packs groceries into boxes to be sent out in ... Read More

Key Insights

• 🫥 Ocado's shares show signs of potential reversal, supported by fibonacci retracement and a strong internal trend line.
• ❓ The FTSE's Elliott Wave analysis suggests a correction phase, with additional downside expected.
• 🧑‍🏭 Resistance levels in Elliott Wave analysis can act as barriers to price movement.
• 💹 The presence of momentum divergence in Ocado's share chart is a bullish signal.
• 😒 The use of robotic technology in online grocery fulfillment is a growing trend.
• ❓ Ocado has major customers in the automated grocery fulfillment sector.
• ✋ Ocado's share price reached a high of £29 in October 2020 before declining.

Questions & Answers

Q: What is Ocado's business model in the online grocery fulfillment sector?

Ocado uses robots to move around its warehouse spaces and pack groceries into boxes for rapid delivery to customers, making it a leader in the sector.

Q: What factors indicate a potential reversal in Ocado's shares?

The fibonacci retracement and the presence of a strong internal trend line, along with a kiss on the support line, suggest that Ocado's shares are likely to reverse and start moving upward.

Q: How does the FTSE's Elliott Wave analysis forecast its trend?

The analysis suggests that the FTSE is in a corrective phase, with a wave 5 rally potentially reaching major resistance levels. Further downside is expected in the future.

Q: What is the significance of the support and resistance lines in Elliott Wave analysis?

Drawing parallel lines from wave lows and highs helps identify major support and resistance levels. These levels provide clues about potential trend reversals and can guide future price movements.

Summary & Key Takeaways

• Ocado, a leader in robotic warehouse online grocery fulfillment, has seen its share price decline and hit a fibonacci retracement of the previous rally, indicating a potential reversal.

• The presence of a strong internal trend line and a kiss on the support line further support the idea that Ocado's shares are bottoming out and starting to rise.

• In contrast, the FTSE's Elliott Wave analysis suggests that it is in a corrective phase, with a wave 5 rally potentially reaching major resistance levels.