The best time to buy Tesco shares
It's had a great 2019, but will it be feast or famine for the supermarket giant this Christmas?
14th November 2019 08:40
by Alistair Strang from Trends and Targets
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It's had a great 2019, but will it be feast or famine for the supermarket giant this Christmas?
When we last covered Tesco (LSE:TSCO), we'd a requirement the share price actually close above 244p to fulfill the first criteria for upward fireworks. In an almost spiteful movement, the price closed at 245p in October and, since then, nothing but pain in the bread aisle.
Presently trading around the 232p mark, Tesco's share price looks set on reversal to an initial 223p. In itself, not a particularly threatening concept but, if broken, secondary calculates at 207p and should be capable of bonking against the uptrend since 2016.
Ideally, this should provoke some sort of rebound. However, it's worth looking hard at the chart as there are significant dangers should the 207p level break.
Obviously, it breaks a major uptrend, but worse, the price achieves a "lower low", propelling itself into a region where continued reversal to 193p looks very possible. At such a level, we'd need revisit the numbers, thanks to the Big Picture painting some truly dramatic reversal potentials.
Allegedly, the price now need only close above 243p to better the immediate downtrend but, thanks to moves in October, we're inclined to widen our parameters, suggesting only above 248p should now make growth to an initial 257p make sense. If exceeded, secondary is a promising (for the long term) 273p.
For now, we suggest it worth watching whether 207p makes an appearance. At such a level, we'd suspect it shall not prove a turkey!
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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