Tesco share price is up today after it announced that it would launch its version of the UK government’s “Eat Out to Help Out” campaign. This news was able to help Tesco share price gain 1.15% on the day even though the supermarket chain did some product recalls along with other supermarkets in the UK.
Under the Tesco “Eat Out to Help Out” campaign, prices of meals and items included in the offer will go for half price. Tesco cafés will implement the 50% price reductions on its menus for three days in the week – Mondays, Tuesday and Wednesdays, all through August 2020. This offer will cover take-away items as well.
Tesco share price is currently trading at 220.00 GBP, as investors were pleased that the company would not be taking money from the government to run this scheme. Under the UK government’s version of the program, participating restaurants will receive a 50% subsidy from the government, but will have to limit each meal to £10, and for eat-ins only.
Tesco’s Eat Out to Help Out food deals will offer coffee from 75p, a full English for £2.07, a Vegan Breakfast for £2.60, British Beef Burger and chips for £3.05 and children’s meals at £1.42.
The scheme aims to help more than 72,000 eateries to boost a return to business for the hospitality industry, which led to the furloughing of 1.4 million workers. According to UK Chancellor of the Exchequer Rishi Sunak, this scheme would save nearly 1.8 million jobs for chefs, restaurateurs and waiters.
Tesco share price continues to trade within the ascending channel on the daily chart, and today’s uptick in price is now challenging the 220.2 price resistance within this channel. A break of this resistance allows Tesco share price to attain the channel’s return line (upper border), and also aim for the 224.0 resistance target. Only a break of the channel’s border allows Tesco share price a chance at targeting previous highs at 228.0, 234.3 or 239.7, depending on the strength of the price action.
On the flip side, failure to break the 220.2 resistance could allow for a pullback towards the 214.0 price support. Attainment of the 211.3 or 206.5 support levels will require a successful breakdown of the channel’s lower border. If the channel borders maintain their integrity, the price could oscillate within the range provided by these borders until momentum in either direction decides otherwise.
