Tesco (LON: TSCO) share price has just hit its lowest level since March 2023. The shares of the top grocery retailer are now changing hands at 260p after breaking an uptrend last month. The latest analysis shows that the time is running out for the bulls.
On Wednesday, UK stocks showed a positive sentiment. The benchmark FTSE 100 index was up 15 points till press time. Tesco shares were up 0.42% as they opened slightly higher. While the higher timeframe outlook remains bearish, it appears that a short bounce is on the cards.
UK Grocery Inflation Decreases In June 2023
As per the most recent Tesco plc news, the grocery retailer has been reported to the competition watchdog by a consumer group due to pricing concerns. According to the details, Tesco failed to provide detailed pricing information on its loyalty card offers.
The latest data reveals that the UK grocery inflation remained at 16.5% for four weeks to June 11. This shows the third consecutive month of decrease. Statistics show that the current UK inflation is the sixth highest in the last 15 years. High inflation is acting as a strong headwind for Tesco share price.
Tesco Share Price May Rebound Soon
Technical analysis of LON: TSCO chart shows that the bears are gaining momentum after a breakdown from the trendline. The price soared above its August 2022 highs in May 2023 but failed to hit the 288p resistance. This gave bears enough power to overcome the bulls and break the uptrend on the daily chart.
The Relative Strength Index (RSI) and the Money Flow Index (MFI), both indicators are showing bullish divergence. This suggests that another bounce is imminent in Tesco stock price. Such a bounce can take the shares for another retest of the 272p resistance in the coming weeks.
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.
