Tesco (LON: TSCO) share price is rallying despite a sideways FTSE 100 index. Shares of the biggest UK retailer have hit their 12-month high today as the stock surged toward its May 2022 high. Our analysis shows that there is still more upside for the shares before having a correction.
On Wednesday, UK stocks showed a mixed sentiment as investors await the outcome of the FOMC meeting in the US. The benchmark FTSE 100 index showed minor losses today as most of its constituents remained sideways during today’s session.
Tesco Keeps Surging Despite Profit Decline
The latest data from the British retailer Tesco PLC shows that the company’s full-year adjusted operating profit numbers meet market expectations. During this time, the company reported £2.63bn profits, which was a 6.9% decrease from last year. However, the total revenue of the company rose by 7.2%.
Despite a decrease in profits, Tesco share price has continued to surge. This suggests that the investors expect the company to report strong earnings this year. In other Tesco news, the retail giant is making major changes in its online delivery service from next week.
Tesco Share Price May Hit 288p Soon
The LON: TSCO chart shows that the bulls are getting more and more momentum with each passing day. The price appears to be respecting the upward trendline, as shown in the following chart. In the coming days, the stock may retest its May 2022 high, which lies at 288p.
There is also a possibility of a retest of the 272p resistance level in order to flip it into support. Such a successful retest can make the Tesco share price forecast extremely bullish, with a target of 300p in sight. For this target to be met, FTSE 100 index must also show some strength in the next few months.
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