Tesco Share Price Clings To 289p Level Amid Lack Of Momentum

Summary:
• LON: TSCO Outlook- Tesco share price continues to trade above 289p resistance despite facing increased selling pressure. 304p is still on the cards.

Tesco share price is still holding above its 289p resistance level despite lacking bullish momentum. On Thursday, the share of the UK-based grocery retailer closed at 289p after showing a minor loss of 0.07% on the daily timeframe.

Nevertheless, the uptrend in Tesco shares remains intact and there is a strong probability of a bullish continuation if the UK inflation remains in a downtrend. Therefore, the CPI and grocery inflation data for December 2023 will be the key in this regard.

After a 22.66% drop last year, LON: TSCO is set to close the year with 28.90% gains. However, the price still remains below last year’s highs of 304p, which might be retested in the coming days. The strength in the FTSE 100 index will also be critical, which is holding above 7,685 points of resistance pretty nicely so far.

According to the latest disclosure from Tesco plc, the British grocery giant purchased 525,405 shares on December 27 in accordance with its existing £750 million share buyback program.

Tesco Share Price Forecast

The following price chart shows that TSCO is currently consolidating around 289p level which is a major resistance level. Despite breaking above this level earlier this month, bulls are struggling to gain momentum due to increasing sell pressure.

However, Tesco share price forecast is still bullish as the bulls are holding the key level so far. This may change if the shares break below £2.89 in the coming days on the daily timeframe.