Sainsbury's continues with minor slip after bearish industry data, however, further declines could allow for a potential buying opportunity.

From a technical perspective, the stock has been in a bearish position after the release of industry data which could see Sainsbury's shares drop further. The share currently sits at £2.00 with a major support base of around £1.80 followed by the pandemic lows of £1.71 (blue trendline). A break below this could intensify the pressure on Sainsbury's, especially with Asda creeping up to overtake their position as UK’s number 2 largest supermarket (according to James Davey). Aldi and Lidl also pose a threat to Sainsbury's market share. Towards the upside, the first line of resistance sits at decreasing triangle resistance. A break above this could see Sainsbury's shares head towards £2.23 (yellow trendline). A break above here would give the share a bullish outlook for the mid-long term. MACD is slightly negative but turning neutral with RSI reading 32. Suggesting the stock is almost oversold which could be an opportunity for a bounce higher. Another drop lower in the stock price could push it into oversold territory and create a technical bounce higher.