The Tesco share price declined in the past two straight days as worries of tighter monetary policy in the United Kingdom and around the world rose. The TSCO stock is trading at 289p, which is a few points below this year’s high of 297p.
Tesco was among the best stocks in the FTSE 100 in 2021 as its shares jumped by over 50%. This performance happened as the company’s size helped to shield it from the supply chain challenges that most retailers went through.
Tesco also benefited from the renewed interest in UK retailers like Morrison’s and Asda. There was also talk that private equity firms were interested in Marks and Spencer.
Most recently, Tesco managed to outperform other retailers in the closely-watched holiday period. According to Kantar, the company’s sales rose by about 10.1% on a two-year basis. The company also managed to grow its grocery market share rising to the highest level since January 2018.
This performance was because of the company’s scale and its growth of online business. Most importantly, it benefited from the growth of its Clubcard prices loyalty card.
Tesco share price forecast
The daily chart shows that the Tesco share price has been in a strong bullish trend in the past few months. The stock has remained above the 25-day and 50-day moving averages and above the key support level at 251p, which was a key point in 2021.
Therefore, the path of the least resistance for the TSCO share price is in the upside. There is a likelihood that it will keep rising as bulls target the key resistance at 310p. This view will be invalidated if the price falls below 280p.