The Tesco share price activity for today may be lower, but there is hope for better days ahead for this stock if the latest sales activity data of online supermarkets in the UK is anything to go by.
A Reuters report indicates that the UK’s grocery market witnessed a 12.2% growth in the last 12 weeks. This has been attributed to the impact of the lockdowns reintroduced in December, allowing more people to spend more on edibles and drinks as they observed lockdowns at home.
Lockdowns mean that cafes, restaurants and pubs cannot function, forcing people to spend more on eat-ins and drinks ordered from online grocery platforms. The Reuters report also hinted at a whopping $1 billion-pound extra spend by UK shoppers on food and drinks when compared with January 2020, just before the pandemic hit.
Tesco and other online grocery chains could see the benefits of these increased sales down the road.
Technical Outlook for Tesco
Tesco share price continues to experience volatility, but price remains in the symmetrical triangle despite violations of both borders. Today’s downside move comes off a rejection at the upper border of the triangle. This rejection and pullback targets the lower border of the triangle. It is possible that an intraday violation of this border targets 239.7. However, a breakdown is needed to approach 236.0 initially, with 234.3 and 231.4 lining up as additional downside targets.
On the flip side, a break of the triangle’s upper boundary is needed to clear the first resistance hurdle at 244.8, and open the door towards the 250.4 resistance target formed by the 27 January high.
Tesco Share Price; Daily Chart