Tesco Share Price Lower As Erstwhile CEO Lewis Steps Down
Tesco share price is lower today as erstwhile CEO, Dave Lewis, steps down tomorrow after six years in charge. Lewis is credited with bringing Tesco back from the brink. When Lewis took over the ailing supermarket chain in 2014, an accounting scandal had brought the company to its knees. Six years later, and Tesco now sits atop the supermarket and grocery business in the UK.
His exit comes at a time of great uncertainty. The UK completes the exit from the EU in three months, and a global pandemic has changed consumer earning power and shopping behaviour. Ken Murphy, who leaves his post at Walgreens Boots Alliance (WBA) to take over as new CEO, is going to be faced with challenges that are on a whole new level.
Investors are treading cautiously on this day as they await the new CEO’s entrance and possible speech as to his plan for the future of the company. Murphy will have a lot to deal with. Earlier today, a Bracknell Tesco store was fined 160,000 pounds for selling expired yoghurt. These are things Murphy will need to get rid off if Tesco is to continue on its path to greatness.
Tesco share price is 1.33% lower and currently trades at 215.3.
Technical Outlook for Tesco Share Price
Tesco share price is pushing towards the 214.0 support, after being rejected at the neckline. If price bounces off the 214.0 support, then a triple bottom would have started to evolve. A push towards the neckline has to break the 220.2 and 224.0 resistance targets. The pattern is complete if the price action breaks the neckline and pushes towards the 231.4 resistance target. Further advance of price action allows Tesco to hit the 239.7.
On the flip side, a breakdown of the 214.0 support negates the pattern and brings in the 211.3 support level as a new target. A further decline brings in 206.5 into the picture.