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Morrisons’ share price continues to trade below its recent highs as the takeover saga nears its conclusion. During a court meeting regarding the CD&R offer, the company recommended that shareholders vote in favor of the deal. The final decision on the takeover bid will follow the court meeting and the shareholders’ general meeting on October 19.
This meeting comes on the heels of Morrisons receiving several accolades. The company was named the 2021 Grocer of the Year at the Grocer Gold Awards, marking the second time in a decade it has won this award. Additionally, Morrisons was recently honored as the Supermarket of the Year at the Retail Industry Awards.
The stock has been trading with low volumes after opening with a bearish gap on Wednesday, and Thursday’s trading showed little change. The bearish gap broke through the 287.6 support level, following a bearish divergence setup on the 4-hour chart. However, bears will need more momentum to push the stock down to the next support levels at 270.2, with 257.3 and 249.9 as further targets, although these levels are currently out of reach.
On the other hand, a break above 297.2 is necessary to restore the stock’s uptrend. If the 297.2 resistance is breached, the next logical target would be 307.7.