Tesco share price continues its amazing run this week following the announcements of the exits of the erstwhile CEO, CFO and its Booker Wholesale Division head on Monday. However, other news are also dominating the headlines.
Tesco branded groceries have started hitting the shelves in discount retailer chain The Reject Shop. This follows a multi-million dollar deal signed by Tesco with the retailer four months ago. Now, Tesco’s items are arriving on the discount chain’s shelves, marking a significant entry into Australia’s retail groceries market.
The Tesco branded products, which include vinegar, rice cakes, biscuits and the Tesco Gold Instant Coffee, will be available in The Reject Shop’s outlets in Canberra, Queensland and New South Wales. According to Andre Reich, CEO of the Reject Shop, the deal would enable the discount retailer to bring cheaper confectioneries and groceries to the local population. This would provide a welcome break for locals, many of whom were struggling to make ends meet as a result of the coronavirus outbreak.
There is a plan to expand the listing of products to cover shops in Tasmania, South and Western Australia as well as Victoria this month.
Tesco’s shareholders and investors are applauding the news of the expansion of the Tesco brand into a market with a large population of British expatriates. The demand for the stock today has sent it higher by 1.86% on the day.
Technical Outlook for Tesco
Tesco share price seems set to extend its winning streak into the third day as the daily candle clears the 224.0 price resistance. A second consecutive candle close above this area confirms the breakout and allows Tesco share price a chance at targeting the 228.0 resistance. Additional targets may be found at 231.4 and 234.3.
On the flip side, failure to complete the breakout as a result of non-confirmation may allow for a pullback towards 220.2, which is where today’s candle found support following the penetrating close of yesterday above that level. Further targets to the south include the recently transcended resistance at 214.0 and 211.3, both now acting as support in role reversal.
Tesco Share Price Chart (daily)