Tesco share price endured one of its wildest days of trading in a long while after two of its top executives were poached by Amazon and Uber over the weekend.
On Saturday, Amazon announced it had hired long-time Tesco exec Tony Hoggett to run its physical stores as Senior Vice President. Hoggett had been at Tesco for 31 years. His exit from Tesco, where he currently heads the strategy and innovation unit, could be a major blow to the UK supermarket chain. Hoggett’s 31-year Tesco career began as a trolley boy, and he had also been the CEO of the Asian division and the Group Chief Operating Officer.
Former exec Even Henrikson was poached by Uber to head its European delivery arm, as reported by Sky News on Monday. A choppy day of trading ensued, with Tesco share price crashing from 237.45p to as low as 223.85 before recovering towards 236.05. It remains lower on the day by 0.69%.
The Tesco share price has rolled back most of today’s losses and now challenges the 236.25 support in a breakdown bid.
If we have two successive daily closing penetrations below this level, the breakdown of 236.25 is confirmed, and the door opens towards 234.25. Other targets lie at 231.90 and 228.05.
On the other hand, a close above 236.25 leaves this level intact, with the potential for a price recovery towards 239.70. This scenario only holds if there is a close above the intraday high at 238.35. Above 239.70, other targets lie at 242.50 and 245.00, in that order.
