The Tesco share price has given up most of its intraday gains this Wednesday, as attempts to continue the breakout move for a fourth day appear to have faltered. This comes as a proposed pre-Christmas strike by company workers threatens the company’s expected boost in holiday season sales.
Data from Kantar showed that Tesco’s performance in the twelve weeks preceding 28 November dwarfed that of Morrisons, Asda and Sainsbury’s, gaining 0.7% market share in the process. However, this positive news was dented by a proposed walkout by more than 5000 Usdaw Union workers spread across 9 Tesco depots.
This adds to the threat of a strike by Unite union workers. The company has reopened negotiations with the labour unions, which turned down a 4% annual wage increase.
The Tesco share price is slightly down by 0.08% as of writing.
The active daily candle is touching off the 283.80 support line. A bounce off this level allows the bulls to target 287.50 once more. If this level is broken, the pathway towards 293.35 (December 2000/27 September 2004 highs) will become more apparent. Above this level, 301.50 and 304.13 would enter the picture as additional upside targets if there is a continued advance.
On the other hand, a breakdown of 283.80 allows the bears to make a run for 276.80. A further decline brings 271.70 into the mix, with 267.15 and 264.45 serving as extra targets to the south.