The Tesco share price is down 1.48% as of writing this Wednesday, as UK consumers continue to cut back on retail spending due to decades-high inflation levels.
The statistics show that UK shoppers are cutting back on the mentioned items. On Wednesday, market research firm NielsenQ said that sales volumes for meat, fish, and poultry were down 13% in the four weeks preceding 23 April on an annualised basis. The firm had previous identified rising prices as a potential trigger for reduced consumer spending.
A separate report by consumer experts at Which? Indicates that shoppers in Tesco and Sainsbury’s could be spending £279 extra by shopping at these outlets compared to regular supermarkets. The recent increase in energy prices following the lifting of the price ceiling by Ofgem is worsening the situation.
Given that Tesco and Sainsbury’s have just issued profit warnings due to the inflationary hit to shoppers’ pockets, sentiment on the Tesco share price has soured this Wednesday. Here is the outlook for the Tesco share price for the rest of the week.
Tesco Share Price Outlook
The intraday slide follows rejection at the 276.8 resistance (8 October 2021 and 7 March 2022 highs) and the descending trendline capping recent highs. The 269.6 support (3 May low) is the immediate downside target. 264.8 (8 March high) and 259.8 (6 October 2021 low) are additional targets to the south, which could serve as harvest points for short orders from the trendline rejection.
On the other hand, the bulls need to uncap 276.8 to open the door towards the 282.2 resistance (25 November 2021 and 6 March 2022 highs). Above this level, 289.9 and 293.3 (30 December 2021 and 1 March highs) serve as additional targets to the north. 304.2 (31 January 2022 high) remains the highest price of 2022 and is attainable only when the bulls have pushed beyond 293.3.