The Tesco turnaround continues

Friday, 15th June 2018 09:19 - by Rajan Dhall

Tesco have performed very well since the start of the year and Ex Unilever maestro Dave Lewis has definitely delivered the goods. This morning the company reported that they delivered positive like-for-like sales growth for a tenth consecutive quarter and at actual exchange rates, sales grew by 2.3% including a 0.5% positive foreign exchange translation effect. Also on a quick note UK retail sales figures came in very strong yesterday which is a boost but some analysts are saying the royal wedding and the FA cup final had a big effect. 

Mr Lewis then went on to comment "Our growth plans are on track and we are pleased with the momentum in the business.  We remain well-placed to serve our customers better and deliver on our medium-term financial ambitions.  We are delighted with initial progress on Booker, and are focused on delivering the synergy benefits that our merger brings."

In the weekly chart below I have outlined the support and resistance areas to keep an eye on. A clear break past the 250p area would be a bullish signal as you can see there will be only one stick point between there and 300p. The 270p area is an area that could prove to be strong as it was the consolidation low at a time when prices broke lower in 2012 when the company was struggling. Its clear to see the share price is bullish from this chart, analysts may have been expecting slightly more from this trading update but nevertheless Tesco are proving there is live in the old dog yet. 

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