10th Nov 2020. 11.16am
Lockdown trades unwind – Market Alert
Just Eat and Ocado drop 5% as lockdown stocks get hit
Yesterday’s positive news regarding Pfizer’s Covid-19 vaccine stage III trial has seen equity markets start to unwind its ‘lockdown trade’.
Two of the biggest winners from this year’s lockdowns have been dine in platform Just Eat and online supermarket Ocado.
Both stocks are being hit hard today as investors look to shift assets into stocks that are set to benefit the most from an early vaccine – those sectors being primarily banks and hospitality.
Just Eat Takeaway.com (JET)
After hitting highs of £100 on the back of a strong trading update last month, JET have undergone a sharp 20% retracement.
Prices are now trading back new key short-term support at 7838p and this level may attract buyers.
We’ll be keeping an eye out for bullish reversal patterns occurring at either Support 1 or Support 2 (see chart below).
Ocado’s share price is threatening to break support at 2260p (support 1) during today’s session.
Should the shares close below this support level, the next logical area of support is down at 1,904p.
However, should the market close back above this support level today – it would signal a bullish fakeout which could lead to a retest of yesterday’s highs. After all, it was only last week that Ocado released a market-beating trading update.
This research is prepared for general information only and should not be construed as any form of investment advice.