The Tesco share price is hovering near its all-time high even as the UK continues battling the ongoing fuel and truck driver crisis. The TSCO stock is trading at 257p, which is a few points below the all-time high of 263p.
Tesco’s ongoing challenges
Tesco is the biggest retailer in the United Kingdom. The company is best known for its grocery stores that serve most of the population every year. It is also known for its fuel stations that serve thousands of drivers per day. The company also owns Tesco Bank.
Tesco is currently facing significant challenges. For one, the company is facing the challenge of the ongoing truck driver shortage that is going on in the UK. During the weekend, the government announced that it will offer thousands of visas in a bid to end the shortage. The move will provide some reprieve for Tesco, which relies on truck drivers to deliver fuel and other products to its stations.
The company is also facing challenges with finding workers to serve in its retail outlets. As a result, the firm has had to increase wages in a bid to attract new talent. This could impact the company’s already thin margins.
Meanwhile, the Tesco share price is rising even as the UK and the European Union bicker about Brexit. The recent tensions about Brexit led to product shortage that led to significant product shortage.
Tesco share price forecast
The weekly chart shows that the TSCO share price has been in a major bullish trend in the past few weeks. The stock managed to move above the ascending triangle pattern shown in black. It has also risen above the short and long-term moving averages (MA) while the MACD remains above the neutral level.
The price also moved above the important resistance at 251p, which was the previous all-time high. Therefore, the stock will likely maitain the bullish trend as investors target the key resistance at 300p.