Investors are selling Tesco’s shares this Monday after a food product recall. The Tesco share price fell 0.34% after the UK’s largest supermarket chain announced it recalled crisps and cake fondant after ingredients that could prove fatal to some customers ended up in the products.
Tesco had earlier recalled baby milk over choking risks. The latest product recall involves crisps with milk-containing pop chips, capable of producing a fatal milk allergy. This adds to the company’s latest struggles as it continues to work around truck driver shortages that are affecting its supply chain efficiency.
Technical Outlook for Tesco
The Tesco share price remains under pressure, and the upside gap, which signalled the first trading day in August, has rapidly closed. This sets the daily candle on a collision course with the 231.90 support mark. Below this level, the triangle’s upper border and the 229.35 support level could become additional downside targets.
A bounce on any of these areas allows the Tesco share price to retest the 234.25 resistance, with 236.25 forming the additional barrier that stands between the upside move and the 239.70 resistance mark. A break of the latter re-establishes the recovery move on the Tesco share price.