The Tesco share price has bounced back after sliding to 217p in March. It is trading at 233p, which is 8% above the lowest level in March. This week, analysts will focus on the company as it publishes its preliminary results for the 2020/21 financial year.,
Tesco news: Tesco is among the several companies that will publish its preliminary results this week. Other notable firms are JD Sports, Entain, Ashmore, and Hays. The firm will publish its results on Wednesday. In general, analysts expect that the firm did well in 2020 as the UK closed most non-essential businesses. This led many people to buy from big box retailers like Tesco and Sainsbury and from online companies like Ocado.
Tesco will also be helped from its fast-growing online platform. Indeed, the company processed more than 7 million orders during the Christmas season. This has seen the company boost its forward guidance. However, its costs have broadly risen. In its recent estimate, the company said it expects costs to rise to 810 million pounds.
However, analysts are concerned whether the pandemic-led rebound will continue this year as the UK ramps up its vaccination efforts.
The four-hour chart shows that the TSCO share price has dropped to 233p from last week’s high of 236p. By dropping, the stock has moved back to the ascending channel that is shown in black. It has also moved above the 25-day and 15-day exponential moving averages (EMA) and is slightly above the 38.2% Fibonacci retracement level.
Therefore, in my view, the Tesco share price will continue falling as bears target the lower side of the channel at 228p. However, this could change ahead or after the Wednesday’s earnings.
