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ASOS and Ocado Group Plc: Outlook for ASC and OCDO at Start of 2015



In this run-down of two of the country’s top online sellers, online supermarket Ocado and clothes retailer ASOS, we consider the latest technical prospects affecting their shares.

The year 2015 has seen Ocado Group PLC (LON:OCDO) shares hit a blip, yet there remains little reason to believe this uptrend cannot continue into the new year.

Having moved progressively higher since October 2014, OCDO share are now approaching resistance levels that have hindered previous gains in the area.

August 2014 saw stalled gains at 400p, whilst back in July of that year 450p proved to be the limit.

Stalling within this particular region, the hampered progress of this recent upward trend remains suggestive, begging the question: are we due a dip?

Adopting a technical perspective our inclination is still to back further rises due to an encouraging and positive array of momentum indicators.

Only in the event that they break down would a call to end the rally occur.

At present however, the RSI sits comfortably over its neutrality area at a healthy 50, particularly encouraging of moves for further gains.

Ocado Group PLC shares are visibly trading well above both the 20 and 50 day moving averages currently observed at 378p and 332p, whilst the MACD remains in positive territory.

Meanwhile, whilst Ocado Group shares are enjoying upside momentum, the same cannot be said for shares in ASOS PLC (LON:ASC).

We are instead seeing a rangebound stock, on the one side dictated by resistance at 2831, and on the other supported at 1950.

Meanwhile the pivot level is at 2336, above which threshold greater gains towards 2831 are able to be bet on, and below which falls as far as 1950 become conceivable.

Signals of momentum are mixed and ambivalent on the share price of ASOS, the MACD being below its negative line, ultimately advocating for additional softness.

However, the stock trades over the 20 and 50 day moving averages located right now at 2531 and 2512.

Little is observed to imply a considerable trend higher or lower is imminent.

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