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Tesco Share Price Extends Gains As UK Inflation Cools Down

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Written By: Abdullah Sarwar
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    Summary:
  • Tesco Share Price Forecast: As predicted in my previous analysis, LON:TSCO is having a strong bounce. It may retest 272p in coming weeks.

Tesco (LON: TSCO) share price has behaved exactly as I predicted in my analysis two weeks ago. The shares of the retail giant have had a strong rebound. While some analysts might be surprised by this move, I’m not surprised at all, as a bounce was written all over the chart.

The benchmark of UK equities, FTSE 100 index currently stands at 7,656 points, which is the highest level in last 4 weeks. After a 1.09% jump on Thursday, Tesco shares extended their gains by another 0.52% on Friday. Till press time, the shares were trading at 261.5p.

UK Inflation Dropped To 7.9% In June

According to the recently released CPI data for June 2023, the YoY inflation for the month remained at 7.9%. This was at par with the Bank of England’s expectations. The data suggests that the inflation in the UK is finally cooling down after soaring to double digits earlier this year.

Tesco share price got a boost from the decreasing inflation. The stock of the grocery retailer is now trading at its fresh 4-week highs. As per the latest news, Tesco plc has signed a deal to occupy commercial space within Inland Homes’ Cheshunt Lakeside development.

Tesco Share Price Prepares For Another 272p Retest

A look at the following LON: TSCO chart suggests that the stock is heading for a retest of the 272p level. This is a major resistance level that has resulted in multiple rejections in the past. This could mean a potential 4% upside from the current level.

In my previous Tesco share price forecast, I predicted a bounce due to the bullish divergences in RSI and MFI. This has played out exactly as I forecasted. If the shares gain strength above 272p, a strong bullish leg might get triggered. This will be only likely if inflation keeps decreasing in the coming months.

In the meantime, I’ll keep sharing updated Tesco stock price forecasts and my personal trades on my Twitter, where you are welcome to follow me.

LON: TSCO Chart

This post was last modified on Jul 21, 2023, 13:43 BST 13:43

Written By: Abdullah Sarwar

Abdullah Sarwar is a blockchain analyst and a cryptocurrency investor with more than 5 years of experience. He specializes in providing crypto price projections based on their fundamentals and price charts. He is also a successful day trader. He graduated in 2015 with a degree in electronic engineering. In his free time, he loves listening to electronic music and playing with trading bots.

Published by
Written By: Abdullah Sarwar