Tesco share price is off intraday lows this Monday after it emerged that conventional UK retailers are canvassing for an implementation of a sales tax on 100% online retailers.
According to a report by Sunday Times, referencing leaked email conversations, online retailers in the UK such as Tesco, Asda and WM Morrison are clamouring for an online sales tax on companies such as Amazon, in order to level the playing field in the retail sector. The same letter is also asking the Chancellor of the Exchequer to cut the business rates for UK retailers involved in brick and mortar business models to save the sector.
There have been numerous complaints over the years that 100% online retailers such as Amazon continue to enjoy an unfair advantage over conventional retailers, who are forced to pay business rates on commercial properties; something Amazon does not grapple with. The business rates are set to kick in once more in April, having been suspended in April 2020 when the coronavirus pandemic took hold of the UK.
Tesco share price is presently off intraday lows, but continues to retain bearish bias on the daily chart. The candle now rests on the 244.8 support. A bounce off this support enables Tesco share price to continue its recovery, targeting the upper channel border. This move would have to take out the 250.4 resistance, as it aims for 254.8 as a possible upside target.
On the flip side, a breakdown of 244.8 opens the door towards 239.7. This move puts the channel’s trendline at risk, with 236.0 and 234.3 also lining up as potential support for Tesco share price action if the channel gives way.
