Tesco Share Price Unsteady As Shoppers Storm Malls Ahead of Lockdown

Tesco is planning to hire 20,000 people to work its supermarkets over the next three months as UK shoppers thronged supermarkets in anticipation of a coronavirus-induced lockdown in the UK. 

Shoppers are ignoring please by Tesco and other major supermarket chains asking people not to engage in panic stockpiling, as online shopping and food delivery sites have become so inundated with orders that they can no longer keep up. 

Tesco’s Chief People Officer Natasha Adams reports that the careers page of the company’s website has seen close 140,000 views. But while things may be looking up for Tesco on the business side, its share price continues to register erratic, choppy movements. 

Tesco share price is currently at 212.0, down by 0.19% on the day after the stock opened with an upside gap, but the relentless selling on the FTSE100 continues to plague the stock. Tesco share price had enjoyed gains in December 2019 as it prepared to sell its Asian operations. The deal which would net Tesco £8bn was concluded earlier in the month. 

Read our Best Trading Ideas for 2020.

Technical Outlook for Tesco Share Price

Tesco share price initially broke above the symmetrical triangle and formed a double top, after which it broke down and took out the 219.15 support line on the weekly chart. Price action has been extremely choppy, making it difficult to predict the next move. 

Immediate resistance lies at the 219.15 broken support. A break above it targets the 244.8 resistance, formed by the previous neckline of the Dec 2019/February 2020 double top. A breach of 244.8 targets the double top peaks at 254.8, after which the 6 August 2019 high at 267.1 could become relevant as a target price for buyers. 

On the flip side, further descent from present levels targets the support at 194.1. The 9 January and 13 November 2017 lows at 176.8 could become a target if the support at 194.1 is broken to the downside. 

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