DAX Index

Tesco Benefiting from Billionaire Interests in Its Asian Operations

Stocks of Tesco have started to push upwards in this week’s trading, as reported interest in its Asian operations has started to heat up. It is reported that several Thai billionaire tycoons have started to line up interest in acquiring the Malaysian and Thailand operations of the UK’s biggest supermarket chain.

Charoen Pokphand Group and Central Group, two Thai companies owned by local billionaires, are among several groups bidding for the Asian interests of Tesco in a deal that could net Tesco some $7bn. Unconfirmed reports say invitation to bid could be issued as early as next month.

This news is presently stoking renewed interest in Tesco stocks, which are currently trading at £252.9 per share. However, regulators in Thailand have indicated that they will subject the proposed sale to close scrutiny, and would not hesitate to hand out fines if any laws were breached.

Read our Best Trading Ideas for 2020.

Technical Outlook for Tesco

Tesco has broken above the symmetrical triangle on the weekly chart, but has found resistance at the 254.8 price level, where highs were previously seen on 7 April 2015 and 23 April 2019. A break of this price area to the upside with a 3% penetration opens the door for possible attainment of 277.8. However, failure to break the resistance at 254.8 could initiate a pullback which retests the triangle’s broken upper border. This border is expected to reverse roles and become a support, from which prices may once more retest 254.8 and above.

However, a breakdown of the triangle support on a pullback move opens the door for Tesco shares to target (previous highs of 28 Nov 2016 and 12 Nov 2018). This is also the area where previous lows were seen on 25 Feb, 10 Jun and 7 October, all in 2019. A further support target lies at 194.1.

Don’t miss a beat! Follow us on Telegram and Twitter.

Tesco price chart

More content

Related Posts: