Can Ocado bounce back after latest share slump?
A summer rally has completely reversed, leaving the online grocer in desperate need of some good news. Independent analyst Alistair Strang studies his charts for positive signals.
24th September 2025 07:47
by Alistair Strang from Trends and Targets
There are some questionable headlines dancing around the subject of Ocado Group (LSE:OCDO). Some pundits are jumping on the “it will never be this cheap” bandwagon, but we have doubts, very real doubts.
A quick glance at the news to look for hints of dark clouds which may be affecting share price movements discovered a few issues capable of elevating an eyebrow.
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Ocado enjoys a Red uptrend since 2013, and movements in the last few sessions tend to indicate the market it perfectly aware of the pretty red line. The share price has now slithered below Red, indicating the share price is just a bad news story away from trouble. The chart extracts below highlight the reason for our concern; early days but no less dangerous. Thankfully, the share price need only close above 229p to greatly alleviate our concern.
Source: Trends and Targets. Past performance is not a guide to future performance.
If trouble decides to come to fruition – as we expect – below 218p risks triggering reversal down to a nice sounding discount price of 155p. While such a level sounds as attractive as a decent avocado, we suspect 155p shall break, opening the door for a longer-term 75p which visually should make a viable entry point.
Should Ocado decide to clamber out of trouble, above 308p should prove capable of a surprise lift to 395p with our secondary, if beaten, at 458p.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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