Tesco share price is up today as the company’s investors continue to applaud its restructuring efforts aimed at keeping the company competitive despite the coronavirus pandemic’s economic effects.
Tesco indicated last week that it was selling its operations in Poland, totalling 301 stores for a net of 165 million pounds in cash, giving it a significant cash injection. Operations in Slovakia, Hungary and the Czech Republic were not touched as the company insists that its undertakings in these areas would retain their strong market positions. This selling round follows a previous sale that grossed about 200 million pounds, according to a Reuters report on the issue.
With the sale, most of Tesco’s operations are now domesticated in the UK, where its stores continue to see a boom in business as people shop basically for essentials sold in its stores. Tesco currently operates a Bags of Help Community Fund to help community-based charities and organizations get £500 each from a £2m funding pool.
Tesco share price has jumped 2.68% to 233.5 on the day. This move occurs after several weeks of choppy price action that was resolved as price broke out of the falling wedge that encapsulated the price action of the last four weeks.
Price is now on its way to the initial resistance at 239.7 (13 December 2019 low and 27 February/22 April 2020 highs). Along this route, the 200-SMA dynamic resistance may come into play, but if momentum is strong enough, Tesco share price would be able to attain the initial resistance level. Beyond this point, the highs of the spike-retreat candle of 16 June 2020 forms the next resistance at 250.4, sharing the honours with the 11 March and 19 May 2020 highs).
On the flip side, 225.8 (lows of last four daily candles) presents itself as the near-term support of choice, with 224.0 and 219.5 remaining relevant if the price is beaten back and breaks down 225.8. Below this area, 219.5 is expected to hold up price decline as new support. This move would invalidate the wedge.