Sainsbury’s share price continues to trade towards multi-year lows, due to the bearish fundamentals surrounding the UK supermarket chain.
Sainsbury share price analysis shows that more downside towards the £105.00 level remains possible while the price trades under the £225.00 resistance area.
Sainsbury’s medium-term price trend
Sainsbury’s share price is trading close to the weakest levels of the year so far, as investors continue to shun the stock and traders sell any upside rallies.
Since the start of 2020 Sainsbury’s share price has lost more than 15 per cent and it is trading basically flat on a year-to-date basis.
SBRY share price technical analysis shows that a bearish head-and-shoulders pattern is warning of further losses towards the £105.00 level.
The daily time frame shows that a bearish head-and-shoulders pattern has been activated, with around £120.00 downside projection.
Failure to move the price above the neckline of the pattern, around the £235.00 level, could see the stock falling towards the pattern’s bearish target, around the £105.00 level, over the medium-term.
Sainsbury’s short-term price trend
SBRY share price technical analysis shows that Sainsbury’s stock has a short-term bearish bias while the price trades below the £210.00 resistance level.
The lower time frames also show that a bearish head-and-shoulders pattern has formed, following the recent rejection from the £237.00 level
According to the size of the bearish pattern the stock could fall towards the £163.00 level if the pattern reaches its full downside potential.
Traders should note that the bearish pattern has been activated now that the price trades below the £200.00 level.
Bulls somehow need to move the price above the £237.00 resistance level to invalidate the pattern.
Sainsbury’s technical summary
SBRY analysis highlights that the share price of the British supermarket giant could fall towards the £163.00 level, and possibly even the £105.00 support level.
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