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Tesco Share Price Marginally Higher As Company Drops Scandal-Hit Supplier

Tesco share price is up today, continuing from where it ended last week after it suspended avocado supplies from Kakuzi, an agricultural firm in Kenya over alleged human rights violations at one of the supplier’s locations. 

According to a report by the Financial Times on Sunday, an undercover investigation alleged that security guards at Kakuzi routinely raped and murdered villagers living close to one of the company’s plantations in Kenya over the past ten years.

UK-listed stock Camelia is said to own a majority stake in Kakuzi, and the company is now facing legal claims in the UK from law firm Leigh Day over the issue. Tesco says it is investigating the allegations and has strongly condemned any human rights abuse from suppliers, saying the situation was “unacceptable”.

Tesco share price is currently trading flat at 219.5, slightly off intraday highs at 220.8.

Technical Outlook for Tesco

Tesco share price has met resistance at the 220.2 price level (8 July, 16 September and 9 October highs). A breakout above this level targets 224.0, with 228.0 and 231.4 lining up as potential targets to the north. 

On the flip side, a decline that extends from the rejection at 220.2 may target 214.0, with 211.3 and 206.5 forming potential downside targets at the 14 July and 25 March 2020 lows respectively. 

Tesco Share Price Chart (Daily)