Tesco shares: Buy or sell?
Tesco waits to see if Brexit comes with fangs or opportunity. Until then, we reveal what the charts say.
19th September 2019 08:55
by Alistair Strang from Trends and Targets
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Like us all, Tesco waits to see if Brexit comes with fangs or opportunities. In the meantime, we see what the charts say.
TESCO (LSE:TSCO)
We've managed almost a year since last covering Tesco (LSE:TSCO). In December, we'd suggested it was critical for the price to exceed 200p as it was teetering on the edge of an abyss.
Somehow or other, the share started 2019 above this crucial level, doing okay in the period since. Just okay, not particularly brilliant.
At present, it's trading around the 235p level and, once again, we'll start with the dangers. Below 210p and reversal to an initial 193p looks probable.
This will break the uptrend since 2016 and open the doors for a dangerous secondary at 182p. It's dangerous, because it will represent a "lower low" below the trend with 150p presenting itself as a possible bottom for some time in the future.
For now, absolutely nothing justifies this gloomy outlook!
Instead, we're able to calculate a trigger level at 244p. Closure above this point shall make upward travel to an initial 257p quite difficult to avoid.
Better still, if exceeded our secondary calculates at 301p and a potential challenge against the long term downtrend which started 12 years ago!
Similar to many shares, Tesco is effectively marching on the spot at present, the market doubtless awaiting to see if Brexit comes with fangs or opportunities.
In-house, our inclination is to watch for warning signs. As a result, we've circled a dip below red at the end of December last year. This innocent little movement 'proved' the uptrend was not sacred and could be broken. Normally, this alone would make us suspect any excuse for negative market conditions will ensure a future break will suffer very sharp, very fast, reversals.
Unlike the experience of shopping in their stores, at present Tesco almost looks promising.
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.
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.
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