The Tesco share price has been in an aggressive bullish push since October 13, surging by 18 per cent to date. Today, the bullish trend looks poised to continue after the past three trading sessions recorded a three-day consecutive bearish move.
The current bullish move comes at a time when the inflation rate is at a 41-year high, with most customers having to cut their spending to adjust to the recent 11 per cent inflation rate. The company has also started responding to the rising cost of living, which has significantly affected its staff.
In recent reports, Tesco indicated they would be offering salary advances to their most vulnerable and cash-strapped staff. In a statement, Tesco, Britain’s biggest retailer, indicated they had taken the measure to help address some of the problems their staff were going through, indicating the salary advances would help the staff navigate the worsening cost of living crisis.
The decision to address their staff concerns came amidst warnings from the country’s budget forecasters, who warned more pain was on the way following the reading of the recent budget by Finance Minister Jeremy Hunt. They indicated that tax rises and spending cuts were expected, likely impacting most of the population negatively.
Despite the current economic environment in the UK, Tesco’s share price has continued to show strength for more than a month. With today’s trading session resuming the bullish trend, I expect a continuation of the long-term bullish trend that started on October 13, which has seen the company’s value rising by 18 per cent.
Therefore, my Tesco share price prediction expects it to trade above 250p in the next few trading sessions. There is a high likelihood we might see prices rising further throughout the year, to possibly close above 300p, despite worsening inflation, as has been the case for more than a month. However, a drop below the 215p price level will invalidate my bullish analysis.
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