Tesco Share Price Has Room to Aim for New 2021 Highs Following Intraday Bounce

Tesco share price has bounced off session lows and is now trading 0.67% higher on the day. This move comes as the company enters into a partnership with Loop to introduce reusable, biodegradable packaging for a host of its products. 

With this partnership, the Loop disposable bags will now see a massive rollout across 10 of Tesco’s largest stores in the eastern section of the UK. At least 88 products, including 35 of Tesco’s brands, will feature on the reusable range as the company moves towards environmentally-friendly options. Ecolab, a cleaning company, will provide cleaning solutions for the returned packages before reuse. 

Investors appear pleased with the development, which could reduce the company’s carbon footprint and ultimately be a cost-saving mechanism. 

Tesco Share Price Outlook

The intraday bounce came off the 254.10 price support, following the formation of a hammer with a large lower shadow as the Friday candle. This sets the stage for Tesco share price to attempt an ambitious push towards 259.80. This would mark a new 2021 high. A break above this level restores the uptrend on the stock.

On the other hand, failure to generate sufficient upside momentum puts the 254.10 support at risk. A breakdown of this level allows 250.35 to come into the picture, with 247.45 and 245.00 serving as additional downside targets. 

Tesco Share Price (Daily) Chart