- Summary:
- A return to traditional shopping methods as the UK economy starts to reopen could lead to more downside moves on Tesco share price.
The Tesco share price has fallen heavily in the last three days, as the impact of the share consolidation takes root. Shareholders had voted with an overwhelming 98% majority to consolidate Tesco stocks into 7.731 million shares. The impact of this consolidation has seen the Tesco share price falling 5.4% last week.
Tesco’s share price has opened the new week 0.75% lower, as the UK government starts to initiate the process of a phased reopening of the economy.
Tesco share price boomed during the 2020 lockdown as consumer shopping habits were forced to change to the online shopping model. The reopening of the economy could lead to a return to traditional shopping methods, which could impact online retail sales.
Technical Outlook for Tesco Share Price
Tesco share price broke below the channel last week with a steep plunge, as the UK prepares to come out of the lockdown. Today’s active candle has formed a doji, indicating a battle between bulls and bears that has not been won.
The bounce on the 224.0 support keeps that support line alive. However, bulls need to use this bounce to initiate a break of the 228.0 resistance to initiate a push towards 231.4. 234.3 and 236.0 remain the upside barriers to Tesco share price’s attempt at retesting the channel’s lower border.
On the other hand, a resumption of bearish momentum puts 228.0 at risk. A breakdown of this level pens the pathway towards 220.2, with 214.0 and 211.3 forming the additional downside targets.
Tesco Share Price; Daily Chart
