Tesco’s share price direction could be decided in a battle between the latest downgrade of the stock by Barclays, and the new national lockdown announced by UK PM Boris Johnson. With bulls dominating Tuesday’s price action, the winner may have been decided already.
BBC News reported today that the online shopping portals of Tesco and other supermarkets involved in the online grocery business have started to experience issues with congestion, as shoppers throng these sites after the new national lockdown was announced yesterday. Other online shopping sites belonging to Asda and Morrison Supermarkets are also said to be experiencing increased traffic.
Tesco share price is up 0.71% today, building on the 2.42% gain of yesterday to help it overcome the negative outlook from Barclays. Barclays bank had issued an “overweight” status to Barclays bank, citing its underperformance in 2020 as one of the metrics it factored into the classification. But as has been proven time and again, a lot can happen in 24 hours.
Tesco share price has hit resistance at 239.7, despite an intraday violation of this level by bulls. Completion of the bullish engulfing candle setup puts this resistance at risk. If it gives way, 244.8 becomes the new upside target.
On the flip side, sellers may only see some joy if the upswing fails, and price descends below 220.2 (where the low of the morning star pattern occurred on 21-23 Dec 2020). Before then, price must take out support targets at 231.4, 228.0 and 224.0, in that order.
