The weekly chart is beginning to look as if an uptrend is developing from the recent lows, price seemed to find a support level between 290 and 300p. While most of the indicators on this chart are looking more positive, there is no clear combination of signals just yet that confirm a new uptrend is in place, for example, MACD is still below the zero line, but the price is now heading in the right direction. The potential break out of the Bollinger Bands gives the possibility that price could carry on going up from here and other indicators will then confirm the move.
On the monthly chart the 290-300p support level can be seen better. There's still no clear sign of a change in the trend, but the MACD indicator is showing a little positive movement towards the upside. It's early days and as this is a monthly chart it will take time before a positive change in the trend is confirmed.
On both charts the challenge will be to see how price reacts as it gets closer to the 20 and 50 dma.
For trading the upside looks better for short term trades, while for longer term investors the long term charts look better that further downside could be limited and the trend might be about to turn over the weeks and months ahead.
Tesco statement expected on 3/10, will probably do a chart update around that time.
ReplyDelete"Tesco could unveil its first rise in UK underlying sales for nearly two years next week, giving the clearest indication yet that its £1bn recovery plan is working.
However, the world's third-largest retailer is expected to again disappoint investors on 3 October by revealing more heavy losses at its US operation, Fresh & Easy, over the first half.
The UK market leader, Tesco is forecast to deliver a 0.1 per cent rise in like-for-like sales in its second quarter to 25 August, according to Deutsche Bank, one of the grocer's three house brokers. This would mark a substantial improvement on the 1.5 per cent decline in the previous 13 weeks and would also be the first time it has posted growth in UK underlying revenues since the third quarter of 2010-11."
http://www.independent.co.uk/news/business/news/turnaround-plan-could-see-tesco-sales-back-in-growth-8180751.html