Tesco (LON: TSCO) share price has shown a great recovery since its drop in March. The shares are 8.4% up from the lows and have hit new yearly highs. Our analysis shows that there is still more upside for the shares of Tesco plc before a potential pullback.
On Wednesday, Tesco shares turned green for the first time this week. The stock dropped during the initial hours of the trading session but recovered immediately. At press time, shares of the biggest UK retailer were trading at 264.7 after showing minor gains. The FTSE 100 index also showed a positive price action and gained 31 points today.
According to Bloomberg, shares of Tesco plc have received a ‘Buy’ rating from seven firms. This shows that the institutional outlook on the stock is bullish for at least a year. The average price target for this year from seven analysts that cover the firm is 308p which is almost 17% above the current Tesco share price.
In other news, Tesco has become the first-ever peat-free business in the UK. Acording to one of the oldest retailer, the initiative came into effect on 3 April. Peat is used to grow potting plants and it results in increased carbon emissions which can affect the climate change.
The LON: TSCO chart reveals many key levels which can act as the support and resistance for the stock. It is also evident from the chart that the shares are trading above the trendline once again after breaking below it in March. This shows that the buying pressure has put the stock bank into the uptrend.
The following chart also shows that the next major resistance lies at 272p which is 2.4% above current price. A reclaim of this resistance can make Tesco share price forecast of 300p a reality. In case of a pullback, 242p level can act as a good support.
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