Tesco share price is up as the stock continues to recover from Monday’s bloodbath in the FTSE 100.
As the Christmas holidays kick in, Tesco has introduced new shopping limits to avert shortages in the days ahead, following the closure of the EU border to the UK. Essentials such as toilet rolls, soap, handwash, eggs and rice are part of items that will be restricted in all its stores.
Thousands of delivery trucks are said to be stranded in the city of Kent, following travel restrictions that were introduced after the discovery of a mutant coronavirus strain. To prevent panic buying in the face of a demand surge by shoppers as the supply chain gets stretched by the situation.
France has since eased the restrictions, but is now demanding a negative PCR test result from all persons entering its borders.
Technical Outlook for Tesco Share Price
Tesco shares were able to find support at the 220.2 price level, following the break of the expanding triangle pattern. This has allowed the price to re-enter the pattern, targeting the 224.0 resistance point. Further advance allows Tesco share price to aim for the 22 September high at 228.0, with 231.4 (18 August and 4 December highs) and 234.3 serving as additional targets to the north.
On the flip side, a continuation of the breakdown move from the expanding triangle only occurs if 220.2 breaks down. This move would then target 214.0 and 211.3 as additional downside targets.
Tesco Shares; Daily Chart