Tesco Share Price On Target for Multi-Month Highs

Tesco share price is up this Wednesday after the company signed a deal with John Lewis Partnership to lease a one million square foot distribution centre to the latter to cater to the rising demand of its online orders. 

One of the spinoffs of the pandemic was a shift in consumer shopping behaviour as lockdowns meant that physical stores had to close for months. Several online stores saw the online orders skyrocket, in some cases overwhelming their ability for order fulfilment. Ahead of 2021’s holiday shopping season, John Lewis has initiated the move for Tesco’s facility to facilitate adequate preparation for the season.

Financial details of the lease were not available as of writing, but Tesco’s investors seem happy with the arrangement and have generated fresh demand for the stock. The Tesco share price is trading 1.38% higher.

Tesco Share Price Outlook

Wednesday’s surge has taken the Tesco share price candle above the 236.25 resistance with a commanding upside penetration. This follows a break of the neckline of the triple bottom pattern, which could facilitate the bullish continuation from the break of the triangle. If the price closes at this level, the breakout is confirmed, and 239.70 becomes the new bull target. An advance beyond this level puts Tesco’s share price in a position of regaining multi-month highs between 242.50 and 245.00.

On the flip side, bears would be looking for the price to decline below 229.35 to re-establish bearish momentum on the stock. This move requires a breakdown of 234.25, 231.90 and the combined support of the descending trendline and 229.35 to be actualized. The new targets would then lie at 227.50 initially before 224.00 and 220.20 come into the picture.

Tesco Share Price: Daily Chart

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