Tesco share price bounced back to bullish ways after the announcement this Wednesday of the completion of the sale of its Thailand and Malaysia operations to the CP Group, in a deal that would add $10.6billion to Tesco Plc’s shareholders.
The sale had commenced in March but faced delays as the coronavirus pandemic caused a global economic upheaval. However, both parties are now aiming to complete the sale by next week.
Tesco share price had risen 1.3% on the day but is off intraday highs after the Tesco Chairman John Allan warned of higher prices of food items on its shelves if a no-deal Brexit occurred. He made the comments on the Bloomberg Markets European Open program on Wednesday morning.
Tesco share price gapped to the upside on the initial news this morning, allowing it to challenge the 228.0 resistance. The price candle violated this level, but the resistance level remains intact. A break of this level is required to send the Tesco share price towards the 231.4 resistance, with 234.3 lining up as the additional upside target beyond 231.4.
On the flip side, a rejection at 228.0 could lead to a selloff that targets 224.0 and 220.2 in the first instance. 214.0 could be another target to the south if the decline continues.
