Tesco Share Price Outlook After the Strong UK Retail Sales Data
The Tesco share price is holding steady after the relatively strong UK retail sales data. The TSCO stock is trading at 279p, which is in the same range it has been in the past few days. It is about 3% below its highest point this month.
UK retail sales data
It seems like the UK economy is doing better than what most people have been expecting recently. Earlier this week, data by the Office of National Statistics (ONS) showed that the country’s unemployment rate has moved to the lowest level since the pandemic started. A day later, numbers showed that consumer inflation was up to the highest point in more than a decade.
Now, data published today shows that UK residents continued their shopping even as prices remain high. The headline retail sales figure tose to 0.8% in October after crashing by about 0.2% in the previous month. This increase was better than the median estimate of 0.5%. Core retail sales rose by 1.6%.
This increase happened as Britons increased their Christmas spending. Indeed, some of the top performers in October were clothes, toys, and sports equipment. This is a positive thing for Tesco since it is the biggest supermarket in the country. It is also one of the top sellers of these items in the UK.
Tesco share price forecast
On the four-hour chart, we see that the TSCO share price declined slightly this week. Still, the stock is between the ascending channel. It is a few points below the upper side of this channel. At the same time, the shares are along the second support of the standard pivot points while the Relative Strength Index has been in a downward trend.
Therefore, the stock will likely remain in a bearish trend in the coming days bears target the second support at 268p. On the flip side, a move above 285p will invalidate the bearish view.