Tesco share price is up 0.24% on Thursday, but the stock has given up a lot of its earlier gains on the day. Tesco share price’s ascent follows news that the company is set to launch its new checkout-free shop. The new payment feature will allow users to make payments by scanning QR codes with their phones.
Tesco share price has been under pressure all week long, first from lower sales year-on-year, and secondly from an industry report that showed that UK supermarket sales fell 1.6% in the 12 weeks preceding June 13 on an annualized basis.
Sales at Tesco fell 0.8% within this period. The fall in supermarket sales is due to the reopening of the brick-and-mortar hospitality businesses, as sales drift from online grocery stores to restaurants and pubs.
Technical Outlook for Tesco
The Tesco share price candles continue to trade within the large symmetrical triangle, with price now testing the triangle’s lower border. The price has bounced on this border but has met a roadblock in the 224.00 price resistance.
Any further advance in the Tesco share price relies on the break of this resistance, targeting 228.05 and 231.90 on the way to the upper border of the triangle. Advance towards 236.25 and 245.00 follows a breakout from the upper border.
On the flip side, a breakdown of the triangle is required to send Tesco share price towards 220.000, 218.50 or even 215.05 if the decline is extensive.