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Morrisons’ share price jumped after the company released its first-quarter results. The stock is currently trading at 184.75p, which is 7.45% higher than its April low of 172p.
What happened: Morrisons, the UK’s fourth-largest supermarket chain, reported strong first-quarter results. Total sales increased by 5.3% during the quarter, with sales excluding fuel up by 2.7%. This growth was largely driven by the company’s online division, which saw a 113% increase, and its wholesale revenue, which grew by 21%. The firm is also on track to meet its goals of reducing debt and increasing profits to over £431 million. The CEO expressed confidence in the company’s future, noting that customer loyalty is strengthening across all areas of the business.
Morrisons, along with other UK supermarkets like Tesco and Sainsbury’s, has benefited from the pandemic, which has accelerated their shift to e-commerce and driven increased sales due to stockpiling. However, there are concerns about whether this growth will continue once the country fully reopens.
The hourly chart shows that Morrisons’ share price has rebounded today, approaching the April high of 186. The stock has already moved above the key resistance level at 184.50 and the 25-day and 50-day moving averages, forming a V-shaped pattern.
In the near term, the momentum is likely to continue as bulls aim for the April high of 186. However, given that this V-shape resembles a cup and handle pattern, a short pullback or consolidation is possible soon.