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Can Tesco extend the run of positive energy?

Independent analyst Alistair Strang studies the charts for clues about what could happen next at the FTSE 100 retailer.

28th August 2024 09:37

by Alistair Strang from Trends and Targets

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Tesco store at night

Tescos share price looks like it intends to continue the run of positive energy it has experienced this year.

Near term, it looks like movement above 352.09p should promote further gains to an initial 360p with our longer-term secondary, if bettered, calculating at a future 380p and some very possible hesitation.

We suggest watching for the market gapping the price up at the open anytime soon, as this will denote an intention of probably exceeding 380p. Whats amazing about this scenario is that it takes the share price into a big-picture zone, where a long-term 486 becomes possible, matching the highs of 2008.

If things intend to go very wrong for Tesco (LSE:TSCO), below 306p looks like the most dangerous trigger level, allowing weakness to an initial 287 with our secondary, if broken, at 251p and hopefully a bounce.

Tesco performance chart

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.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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