The Tesco share price was little changed on Tuesday as investors reflect on the ongoing oil shortage in the country. The TSCO stock is trading at 257p, which is a few points below its all-time high of 264p. It has risen by more than 45% this year.
Oil shortage in the UK
Tesco is one of the biggest oil retailers in the UK. The firm sells petrol and other products in its 600+ locations in the country. As a result, the company has been in the spotlight as investors pay attention to the ongoing fuel shortages in the country.
This shortage was caused by the substantial panic buying and the overall shortage of truck drivers. Recent data shows that the UK needs about 100k truck drivers. The UK government has already provided temporary visas to about 1,000 foreigners to start driving trucks. At the same time, the government has said that it will likely deploy the military to provide more supplies.
Meanwhile, the UK environment minister and a group of petrol station agencies said that this panic buying will likely end soon.
Still, the impact of these supply shortages on Tesco’s earnings will be relatively minimal in the near term.
Tesco share price forecast
The daily chart shows that the Tesco share price managed to break-out above the upper side of the ascending triangle in August. In price action analysis, an ascending triangle is usually a bullish factor for assets.
Since then, the stock’s upward trend has been supported by the 25-day and 50-day moving averages while volume has been elevated.
Therefore, the path of the least resistance for the Tesco stock price is in the upside, with the next key resistance level to watch being at 300p. This view will be invalidated of the price manages to move below the key support level at 240p.