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Tesco Share Price Gets Boost from Holiday Sales Increase

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Written By: Eno Ikenna Eteng
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    Summary:
  • The Tesco share price is seeing a 2nd consecutive day of gains after the company's holiday sales rose 3.2% over the previous year.

The Tesco share price has built on yesterday’s intraday recovery to push higher by 0.68% this Wednesday. 

This move comes on the back of recent data that showed a 3.2% increase in sales over the Christmas holiday period, up to 8 January, when compared with sales figures for the same period a year earlier. Compared with the same period in 2019, Tesco recorded an 8.7% sales increase. 

Tesco Chief Executive Ken Murphy attributes the sales increase to the effect of the Omicron variant of COVID-19, which led to a “greater focus on celebrating at home.”

A look at the daily chart indicates that the recent upticks have come from a bounce on the ascending trendline that connects the recent lows and the 287.50. Here is the Tesco share price outlook for the rest of the week.

Tesco Share Price Outlook

The price action is now challenging the 293.35 resistance mark. If the bulls uncap this barrier, a move towards 301.50 would be on the cards, especially if the 5/6 January high at 297.30 is exceeded. 304.15 and 309.80 are additional price targets to the north.

On the other hand, rejection at 293.35 could lead to a pullback that aims for 287.50. 283.80 and 2876.80 are additional downside targets that could come into the picture if a steeper correction plays out. 

Tesco: Daily Chart

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This post was last modified on Jan 26, 2022, 13:18 GMT 13:18

Written By: Eno Ikenna Eteng

Eno's work as a technical analyst and author since 2009 is well recognized in the industry and on several freelance platforms. He is also a member of the prestigious UK Society of Technical Analysts and a top-ranked participant in the Basic Investment Banking and Asset Management simulations with Amplify Trading.

Published by
Written By: Eno Ikenna Eteng