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Tesco Share Price Extends Its Gains As It Boosts Wages

Tesco share price (LON: TSCO) is still rallying, adding another 4.5% to its gains. After a negative price action on Monday, Tesco stock started green on Tuesday. The price is currently trading at 251.6 GBX, which is 29% up from the October 2022 low. The ongoing uptrend is gaining strength despite the recession fears and more rate hikes lined up in the coming months.

Tesco News Today

According to the latest Tesco news (LON: TSCO), one of the biggest retailers in UK has announced a wage increase. With effect from April 2, around 220,000 workers of Tesco will get a 7% raise in their hourly wages. This also means a £230 million investment to enhance employee renumeration.

Currently its stores are paying £10.3/hr to their employees. After the change, employees would be getting £11.02/hr. The move by the parent company behind Tesco Online and Tesco Express comes at a time when Asda and Sansbury have also announced similar raises.

This will be the 3rd pay raise by the retail giant in the last 10 months. This also translates into a £450 million investment over the last year.

We know that many colleagues have felt the pressure of rising costs this year and we are absolutely committed to supporting them with competitive base pay and exclusive benefits.

Jason Tarry – Tesco CEO

Tesco Share Price Chart – Daily

Aas mentioned in our previous Tesco forecast, LON: TSCO has formed a symmetrical wedge pattern. A closer look at the chart reveals a minor yet very critical information which shows that bulls are gaining strength. On daily timeframe, Tesco share price has broke out of the symmetrical wedge pattern as well as the key resistance of 246p.

Another reason for the recent bullish price action is the successful retest of the 200-day moving average. If price retests the 246p resistance and flip it into a support the Tesco stock price can really surge in the coming days. In such a situation, bulls may target the August 2022 high of 272 GBX.

Tesco share daily chart
Tesco Share Price (LON: TSCO) Chart – Prepared by Abdullah