Police close down a large Tesco Extra store in Sheffield due to a major incident
Tesco share price is trying to claw its way back above 285p on Wednesday, gaining 0.25% in 24 hours to trade at 280.5p. Tesco shares have had a good run since mid-August, mostly staying on an uptrend, with a few retracements in between.
Are you looking for news for your Forex and CFD broker? Check out TradingBull.ai.
As the peak shopping season nears, we are likely to witness further gains by the grocer. Already three of the leading analysts have projected significant growth for Tesco shares. Barclays, JP Morgan Chase and Shore capital have recently predicted growth in the share price.
The greatest threat that faced the retail giant was the damaged reputation following its accounting scandal. However, it seems to have shaken off that threat. Tesco also did well to handle the logistics problems that plagued the market in the first half of the year. Therefore, barring an unfriendly development in market fundamentals, Tesco shares are likely to head up as the year comes to a close.
The Tesco share price momentum is mildly strong, with the RSI currently at 58. This signals that the share price could appreciate in the near term. However, to stay on track to hit the 285p mark, the share price needs to stay above the psychological support at $280.
If the bulls sustain the upward momentum, they are likely to push the price to the first resistance at 281.65p. Beyond that point, the next resistance will come at 284.70p. However, if the momentum weakens, we could see the price slide to the first support at $279.40p. If it breaches that point, the next support is likely to be at 276.65p.