Tesco May Be Starting a New UptrendTesco has broken the resistance level. The previous pattern consisted of lower highs and lower lows.
This may now change to higher highs and higher lows and if this is the case then we may see a bull trend form.
We would preferably like to see pullbacks that are not too deep and we want frequent breakouts in an uptrend which would
indicate to us that we are in a strong uptrend.
Price is above the Weekly and Daily 200 simple moving averages which gives us a bullish bias.
On the daily timeframe (not shown) there was a gap up after price broke above the resistance level and if the momentum continues
then we could see a strong uptrend unfold.
Price trended well in the past from 2003 to 2007 from £1.55 to £4.70 so time will tell if price will be able to repeat that trending
period again going forward.
As price has just broken out of consolidation it would be best to wait for another breakout before considering a long trend.
Patience for now as we wait for a trend to form.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!
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