The Tesco (LON: TSCO) share price was in the green on Friday despite weak UK retail sales data. At the time of writing, it was up 0.80% at 245.95p. Its total market capitalization currently stands at £19.01 billion.
The Tesco share price was in the limelight after the release of UK retail sales data. According to data published by the Office for National Statistics (ONS), retail sales volumes in July 2021 fell 2.5% MoM. This followed a 0.2% gain in June. The sales volume jumped 2.4% on a year-on-year basis, easing from the previous 9.2% gain.
Over July, core retail sales declined 2.4% after a 0.3% increase in the previous month. On a year-on-year basis, the core retail sales climbed 1.8%. Non-food stores dragged the retail sales following a 4.4% slip in sales volume.
With the surging coronavirus cases, retail sales in the United Kingdom are likely to remain in the red in the near term. Being the UK’s largest retailer, a decline in retail sales will affect the Tesco share price.
Tesco share price has been in the spotlight following the ongoing bid to acquire Morrisons. Former Tesco boss, Sir Terry Leahy, who is the current CEO of Morrisons, regained the lead in the race to buy Morrisons. The company agreed to a takeover offer worth £7 billion from Clayton, Dubilier & Rice (CD&R).
For the past five months, the Tesco share price has been trading in a bullish ascending channel before breaking out to the upside. The stock is trading 14% above its lowest level this year. It hit an intraday low of 244.20 p before reversing upwards.
On the daily chart, it is trading above the 50, 100, and 200-day moving averages, reinforcing the bullish outlook. However, the company’s shares are likely to face a minor retracement before pulling back. On the flip side, a move below the 200 DMA will invalidate this view.