Tesco (LON: TSCO) share price is showing strength amid the recent sell-off in the UK equities. On Friday, FTSE 100 index turned red once again, losing 150 points during an initial couple of hours of trading. This has led to a pullback in Tesco plc shares as well.
The benchmark UK index FTSE 100, is currently 8.3% down from its all-time high. Nevertheless, Tesco shares have shown relative strength when compared to the rest of the market, as the shares are down only 5.4% during the slump. At press time, shares of the biggest UK retailer are trading at 250.7p after dropping 1.22% in today’s trading session.
Tesco Expands Same-day Delivery to 1000 Stores
As per the latest Tesco news, the company has announced the expansion of its same-day delivery service to its 1000 stores. According to the latest announcement, the delivery service known as Whoosh has exceeded the company’s expectations. The company had initially projected to roll out Whoosh to 800 stores by February 2023.
Tesco share price is expected to face headwinds in the coming quarters of this year as inflation in the UK is still rising. The company’s 12 April financial report will be very crucial in this regard. There are also growing fears that the UK and US economies might enter a recession in the second half of the year. Such a situation will be detrimental for the retailers like Tesco plc.
Tesco Share Price Can Drop To 200 MA
The chart of Tesco shares shows a breakdown from the daily uptrend line. On the weekly timeframe, the price is yet to make a lower low, due to which there’s still a chance for a strong bounce. Currently, the price is battling with the key psychological level of 250p. A break of this level might result in a drop to the 200-day moving average, which lies at 241p.
Tesco share price forecast will turn bearish if the price breaks below 200 MA on its daily chart. In such a scenario, shares can tag their yearly lows around 225p, which is 10% below the current price.
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