Tesco Share Price Forecast: Bulls Get Exhausted After a 12% Rally

Summary:
• After surging 12% since the start of 2023, Tesco share price is now correcting. Price has seen a rejection from 250 GBX level.

After surging 12% since the start of 2023, Tesco share price is now correcting. The price has lost 3.12% since its last month’s high of 250 GBX. During Friday’s trading session, the price broke below the 200-day moving average that currently lies at $243.1. If it closes below this level then I expect a deeper correction in LON: TSCO.

What is Tesco?

Tesco is one of the largest retailers in the world. The British multinational company deals in groceries and merchandise. Its stock is listed on London Stock Exchange and has a market capitalization of £17.72 billion.

According to the latest Tesco news today, the company has resued 30 million meals leveraging its partnership with the free sharing app Olio. Thousands of volunteers collect the excess food from the Tesco outlets and distribute it in the community via the Olio app.

The partnership started in 2020 and has saved millions of meals from going to waste. In other news, Tesco is fighting a High Court battle with the German discount chain known as Lidl. As per Lidl, its trademark and copyright have been violated by Tesco.

Tesco Share Price Chart

As described earlier, Tesco chart is currently experiencing a correction after getting rejected from the 250 GBX level. Its inability to break above the key psychological level suggests that the bulls are exhausted.

Tesco share price has been in a constant uptrend since hitting the low of 194 GBX in October 2022. The price has rallied more than 24% since then and is now trading at 241.7 GBX. A closer look at the chart shows that the price has formed a symmetrical triangle. If the price breaks above 250 GBX level then I expect it to keep going up further.

In such a scenario, bulls may target the 272 GBX level. However, in event of a breakdown from the trendline, Tesco stock price is likely to revisit the December 2022 low of 220 GBX. On Friday, TSCO opened at 244.5 GBX and slid -1.23% within a couple of hours.