Tesco share price looks set to give back all the gains made on Monday after new coronavirus restrictions have forced it to introduce limitations on how much customers can buy certain household essentials.
InvestingCube's S&R Levels
Reuters is reporting that flour, pasta, tissue paper rolls and anti-bacterial wipes are among items whose sales have been restricted to prevent a recurrence of the run on these items just before the national lockdown earlier in the year. The situation at the time forced many Britons to drive distances or queue for long hours to buy these items after panicked early shoppers cleared out shelves. With the rise in UK coronavirus cases, people are being told to work from home if they can and this is stoking panic.
A Tesco spokesperson is urging its clients to shop as normal, as the company has enough stock to go round. The company was forced to react after images emerged of empty shelves that had been cleared out in its store at Market Rasen, Lincolnshire. These were blamed on panic bulk-buying.
Tesco share price reacted negatively to the news on the day, falling nearly 0.91% to 217.1. The stock is down 1.14% this week.
Outlook for Tesco Share Price
The selloff this week on Tesco has breached the support at 220.2, thus opening the pathway to the 214.0 support target. Below this level, 211.3 and 206.5 line up as potential targets to the downside.
On the flip side, a bounce from 214.0 may create a potential for recovery, forming a triple bottom pattern. However, only a break of the potential neckline and the 228.0 resistance would allow a further push to the north, targeting 231.4 and 239.7 on the Tesco share price daily chart.