The Tesco share price declined today as the UK moved to reopen its economy. The stock is trading at 227p, which is slightly below the important resistance at 231p.
Tesco news: Tesco and other UK retailers have had mixed outcome from the pandemic. The recent lockdowns have pushed more buyers to their online platforms as they stockpile. This has seen them increase their revenue substantially.
However, they have also led to substantial costs as the companies increase their delivery capabilities. Therefore, with the UK moving to reopen its economy, analysts are looking at the impact on their revenue and profitability. As the biggest retailer in the country, Tesco will act as a barometer for the sector.
The four-hour chart shows that the Tesco share price has been in a steady upward trend recently. Along the way, it has formed an ascending channel that is shown in black. It has also moved above the short and longer term moving averages.
Therefore, while the upward trend may remain for a while, we should not rule out another decline as bears target the previous support at 217p. This price is about 4% below the current price. However, a rally above the 50% retracement at 233p will invalidate this trend.
