Tesco Share Price Surges As Eat Out to Help Out Campaign Gains Traction
Tesco share price is up for the 2nd day in a row as the company’s privately funded Eat Out to Help Out campaign appears to be gaining traction. However, this is not the only reason why Tesco share price is gaining investors’ attention. Indications are that Tesco is also doing a lot to eliminate the wastage of food that is still fit for human consumption.
A food waste report indicates that Tesco was the first major food company in the world to report on food waste in its operations, and it has now reduced its food waste from 3.5% of sales to a mere 0.35%. Not only does this prevent the wastage of food that remains consumable, but it also allows the company to have access to 3.15% more food products that it can sell and generate revenue. Considering that Tesco fulfilled more than 14 million orders across 19 weeks that included his biggest food sale on Christmas day 2019, this amount saved from wastage is enormous.
In an era where dividend investing has become more challenging due to the effect the coronavirus has had on several big companies listed on the FTSE100, Tesco remains one of the few companies in the premier UK stock market not to cut or write off dividend payments. As at the last count, about 50 companies listed on the FTSE100 have either reduced or scrapped dividend payments entirely, with BP being the latest company to announce such measures.
Tesco share price is currently trading at 221.3 or 0.96% higher on the day.
Technical Outlook for Tesco Share Price
Tesco share price action continues to occur within the context of the ascending channel on the daily chart. Today’s price candle has breached the 220.2 resistance to the upside but will need confirmation of the breakout to have a clear pathway towards the next resistance at 224.0. This new resistance is also where the upper boundary of the ascending channel is located. A break of the channel to the upside allows Tesco share price to aim for the 228.0 resistance, with 234.3 and 239.7 also remaining relevant to further upside momentum.
On the flip side, rejection at the channel’s upper border allows Tesco share price to make another run to the south, targeting the lower edge of the channel. Only a channel break to the downside will permit the price candles to target the 214.0 and 211.3 support targets, in that order.