The Tesco share price has been at a standstill for the past five months. The stock inched 0.30% lower on Monday and is trading at 233.65p.
Tesco Price Action
Tesco is the largest supermarket chain in the United Kingdom before Sainsbury’s and ASDA. It operates more than 4,000 stores in the UK and is the biggest supermarket by market value. It has a total market capitalization of £18 billion.
Tesco share price has been on a downward momentum for the past couple of weeks. Other retail stocks have boomed on the acquisition claims. Morrisons, the fourth largest supermarket chain in the UK, was already acquired. Being large, Tesco is not likely to be put in a bid.
According to the company’s report on June 18, 2021, the company posted a strong performance in the first quarter. Its revenue rose 1% to 13.36 billion pounds. The company is expected to post its second-quarter earnings on October 6. With the surging cases of coronavirus, the Tesco share price is likely to decline further as the UK government poses strict restrictions.
The company has also been facing a chronic shortage of workers. The company recently announced its £1,000 offer as a free joining fee for lorry drivers. The lack of drivers has seen supermarkets including Tesco suffer shortages of some brands.
Tesco’s Technical Analysis
The daily chart indicates that the Tesco share price has been stuck in an ascending channel for the past few months. It was trading 7.35% below its highest point this year on January 27. It hit an intraday high of 234.40p before pulling back.
With the resurgence of Covid-19, the stock is likely to dip in August. If the current pattern continues, prices are likely to go lower to 223.25. Traders might opt to buy at this level with a support at June’s low of 221.60. However, trading above the channel, the prices might reach 251.60p.