#DAX #NASDAQ It was a bit of a shock to realise we last covered #Tesco in 2019 with the share price doing very little since. Finally, it’s showing early potentials of change as the share has been malingering since 2015, a flurry of emails suggesting other folk have noticed something potentially important. It’s certainly surprising against the backdrop of the UK’s doom and gloom. Then again, essential retail generally does pretty well, when the price of goods is no longer the driving imperative and in todays Britain, delays in food imports, along with the need to avoid dying certainly nudge ahead of a bargain in the Creme Eggs department!
The share has a pretty vivid downtrend since 2012, the price effectively flatlining since 2017 but now, the price has finally exceeded this potentially important downtrend. Obviously, this gives no certainty of imminent increase, just places the share in a region where positive news can enjoy positive price movements, unhindered by a trend line many investors shall feel important. We’ve shown the somewhat hesitant break through the trend on the chart inset, price movements since the start of the year indicating the wider market is also perfectly aware of this downtrend.
Our inclination is now to play safe, rather than trumpet the potential of amazing rises ahead. Instead, we’ve established 260p as a viable trigger level with movement above this point calculating with the potential of an initial 295p with secondary, if exceeded, working out at a longer term 319p.
In keeping with “playing safe” when looking at recovery potentials, we’ve opted similar methodology for examining trigger levels for reversals. Tesco share price needs trade below 189p to give sufficient excuse for panic. This sort of thing risks proving quite traumatic, giving an initial 164p with secondary, if broken, at a bottom of 144p.
Oddly, this isn’t ‘as bad’ as Tesco could get. For light relief, we calculated where our “ultimate bottom” resides, the number below which we cannot calculate. It works out at 77p, almost the price of two Creme Eggs*** from Tesco. But Sainsbury are selling them for just 35p. We suspect, if we ever witnessed Tesco share price at such a level, we’d feel safer buying the chocolate treat instead!
***Useless info: the writer has literally never eaten a Creme Egg.
FUTURES
| Time Issued | Market | Price At Issue | Short Entry | Fast Exit | Slow Exit | Stop | Long Entry | Fast Exit | Slow Exit | Stop | Prior |
| 10:49:32PM | BRENT | 55.85 | ‘cess | ||||||||
| 10:52:08PM | GOLD | 1872.04 | Success | ||||||||
| 10:54:29PM | FTSE | 6753 | |||||||||
| 10:58:49PM | FRANCE | 5643 | |||||||||
| 11:00:43PM | GERMANY | 13949 | 13804 | 13762.5 | 13694 | 13892 | 13969 | 14019 | 14094 | 13875 | |
| 11:02:39PM | US500 | 3850 | Success | ||||||||
| 11:07:29PM | DOW | 31189 | ‘cess | ||||||||
| 11:10:01PM | NASDAQ | 13316 | 13124 | 13078.5 | 12992 | 13255 | 13335 | 13359 | 13390 | 13217 | |
| 11:12:06PM | JAPAN | 28695 | Success |
