Tesco Technical Analysis

Wednesday, 18th September 2019 07:28 - by Rajan Dhall

The share price of the retail giant has recovered on the weekly charts. There has been a strong rejection of 200p on the downside and now the price has settled at around 235p.

I think it's fair to say the larger volume spikes have been to the downside but since the lower high was created on the week of the 23rd of April, there was not enough selling conviction to break down below 200p.

I get the feeling if the downward sloping trendline breaks on decent enough volume the share price could test the highs at 266p.

The resistance of 250p stands in the way and has been a problem in the past and that could be an obstacle. 

The daily chart below illustrates my point about the volume perfectly. There is a massive volume spike marked by the arrow. 

The main point on this chart is the break of the trendline to move higher the price is now currently resting it but the price could come back though and try to find support at the value area is 230p. 

That could be the area we might see a bounce. On October 2nd we should get the next set of interim results so remember that is on the way and watch the price action leading into the event.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.