Tesco (LON: TSCO) share price has been soaring since last week. The shares for the British retailer were up 7.2% from its August lows. The price chart also reveals that the shares broke above the 200 MA level before rising another 4.4% towards last month’s high.
The UK equities are experiencing a bullish sentiment, as evident by a bounce in the FTSE100 on Tuesday. The index is up 185 points from its last week lows and sat at 7441 points at press time. At the time of writing, Tesco shares were changing hands at 262.6.
Supermarket Sales Growth Slows Down
The market researcher, NIQ, reported a 7.2% supermarket sales growth, which is the lowest growth rate since January. NIQ listed the rainy weather as the cause of the slowdown in supermarket sales. Despite the decline in the overall supermarket sales growth, Tesco sales rose 9.7% over the 12 weeks to Aug. 12.
On Friday, Barclays increased the target for Tesco share price from £320 to £325 and maintained its overweight rating. Earlier, another investment bank, Jefferies, increased the price target for the supermarket giant from £310 to £320 and kept its “buy” rating for the stock.
Tesco Share Price Forecast
The price chart for LON: TSCO shows the price is trading 0.47% below the July high of 265. The share price for the British retailer is up 6.5% from its monthly low of 246.7p. The chart also shows that the price broke above the 200 MA last week, which is a strong bullish signal.
If the price breaks above 265p, Tesco share price forecast will become even more bullish. In this case, bulls may target 272p whcih is the next resistance level. For the outlook to flip bearish, the price must get rejected from 265p. The bearish target after the rejection will be the 200 MA, at 251.9p.
In the meantime, I’ll keep sharing updated Tesco stock price forecasts and my personal trades on my Twitter, where you are welcome to follow me.
