TSCO trade ideas
Tesco LONG - Broken Resistance 220Tesco are looking pretty good for 2019 climbing 33% from 190 in January to 253 at the end of April. They've been on a decline since then due to strong market competition, economical challenges looming with Brexit, increasing pressure from the discounters in particular Aldi increasing market share. Tesco have taken a slight dip in market share but still the clear favourite. Tesco look to have bottomed out and on the rise again.
3 year uptrend is strong.
RSI is trending upwards.
Resistance level of 220 broken.
Next level of Resistance at 242.
Tesco - Bouncing from the 61.8% Fibonacci supportBUY – TESCO (TSCO)
Tesco PLC (Tesco) is a retail company. The Company is engaged in the business of Retailing and associated activities (Retail) and Retail banking and insurance services.
Fundamentals
It’s been a tough few months for Tesco shareholders with the shares having slumped over 13% from the 2019 high. The business has embarked on a massive overhaul over the past 5 years to make the operation a lot more efficient, which has put the company in a good position overall. The operating margin is continuing to rise, and management believe 4% is achievable in the short term. The company looks set to maintain its position in the market and continue to grow its earnings.
Best Broker Target Price: 285p (Deutsche Bank 19/06/2019)
Worst Broker Target Price: 230p (Goldman Sachs 02/04/2019)
Technical Analysis
2019 started off so well for Tesco share holders with the shares rising from 187p to 254p in the space of just over 4 months. The recent decline from those highs has not been so impressive, but some support appears to be forming around the 61.8% Fibonacci support level at 212.7p. There have been a number of bullish candle around this price, which is an indication that buyers are returning.
Recommendation: Buy
Buy between 215-225p
Stop: 210p
Target: 250p
Tesco approaching support, potential for a bounce!Tesco is expected to drop to 1st support at 220.3 where it could potentially react off and up to 1st resistance at 237.5.
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TESCO SHARES TO ROCKET TOMORROW?Hi fellow traders! Tesco really has to potential to move either side tomorrow! Hopefully to the upside however, considering its sale growth, over past consecutive quarters.
Tomorrow, Tesco PLC are going to be releasing their full year results tomorrow (10th April 2019). This could give the potential for this stock to spike upwards. Investors will be keen to see if Tesco has held onto its constant quarterly sales growth amongst fierce, competitive market conditions.
Although Tesco (the UK's largest supermarket) has been losing its market share in the UK to German discount supermarkets, such as Lidl and Aldi where it has had its market share drop 0.2% to 27.4%, and Asda (2nd largest supermarket in the UK) plans on merging with Sainsbury's (3rd largest supermarket in the UK), Tesco has had its sales rise by 0.5% in the 3 months to March 24 2019. This paves the way for investors to potentially have confidence in the brand, as it has seen a rise in sales and the Asda and Sainsbury's merger has not been confirmed by the UK's Competition and Markets Authority. This means the potential future loss of market share by Tesco should not impact its share price tomorrow hopefully.
One of the other main issues Tesco faces however is the question of why management chose to cut up to 9000 jobs, closing fresh food counters, but this should not be as interesting as hearing nice rises in sales and profits!
Moreover, Tesco acquisition of Booker Group, a wholesaler in the UK has been going well and should have increased their purchasing power in the market, giving them the opportunity to raise their profit margins or reduce prices and have higher sales from this, as they are able to benefit from bulk-buying. It has also entered a buying agreement with Carrefour, a French supermarket group. This should look to help the group financially and increase its dominance of its brand worldwide if the transaction goes through, another potential positive outlook for investors.
From the results in October 2018 for quarterly results, Tesco's CEO claimed they were on track to deliver their medium-term ambitions set in October 2016 which were to:
- reduce costs by £1.5 billion
- generate £9 billion from operations from retail
- improve Tesco group's operating margins to 3.5%-4% by 2019-2020
Also, if tomorrow's talks with regards to Brexit is positive and there is a reduced chance for a No Deal Brexit as Theresa May obtains an extension, this should look to benefit the LSE, placing hope in investors for any potential financial turmoil for the UK. This should also let investors realise that Tesco and other supermarkets are not at risk of any major political/financial issues.
If these targets are closer to being fulfilled, this should easily let the share price rise.
Note: The red regions signify resistance regions, and the green, support regions.
I would look for this stock to rise in value. My targets are as follows:
TP1: AROUND 238.00
TP2: AROUND 240.00
TP3: AROUND 244.00
Additionally, looking at this stock from a technical perspective, an ascending triangle has been forming (as drawn on the chart), paving the way for a breakout and some positive price action!
Unfortunately, if the report tomorrow is not well for Tesco, it could look to drop to the following regions:
TP1: AROUND 228.00-229.00
TP2: AROUND 223.00
TP3: AROUND 216.00-218.00
Finger's crossed I am right tomorrow!
If you read it to all the way down here, thanks for showing some support to this article! Tell me where you think Tesco will be heading next! Comment below all your ideas about the future of Tesco! Buy or Sell and why? Additionally, drop me your charts/ideas for it, that'd be great so I can see where you are coming from. I'm a new guy to the FX, Stocks & Crypto market, and I'd appreciate any help people may offer!
Please drop a follow/like! I need reputation points!
TESCO PLC Wave Count and Potential Long Trade Set UpTesco PLC looks to be trading in corrective mode at the moment as we pull back towards the 38.2% Fibonacci retracement level. Stochastic is also moving into oversold territory. If we start to see some support coming in around the 38.2% level around 234 and we get a bullish crossover on stochastic we would have a good low risk long trade set up.
TSCO LongTSCO is also on my watch list for this week as it is currently attempting to take out the 230 level which has been resistance since October last year and before that was resistance turned support back in April 2018. TSCO has been getting super tight to this level and after a good sell-off from 230, the stock has put in three higher lows suggesting a buyers market. What I like most about this set up is how tight a risk profile we can get with today's price action a stop order will be placed above 7th of February 2019 high at 231.7 aiming for the path of least resistance for a move higher. The stock is also testing its 200 day MA which means that the name will be on a lot of institutional traders radars so if a meaningful break of this level occurs there could be some real buying power behind it. Feel free to pick this trade apart or tell me where you agree, happy trading.
Joe
LSE:TSCO
TSCO Reversed From Resistance, Potential Drop!TSCO reversed from resistance 228.1 (61.8% Fibonacci extension , 50% Fibonacci retracement , horizontal overlap resistance) where it could potentially drop down to its support.
Stochastic reversed from its resistance where a corresponding drop could occur.
TSCO Reversed Off Resistance, Potential Drop!TSCO reversed off its resistance at 227.4 (61.8% Fibonacci extension, 50% Fibonacci retracement, horizontal overlap resistance) where we expect to see a drop to its support at 207.8.
Stochastic has reversed off its resistance where a corresponding drop could occur.
TSCO Approaching Resistance, Potential Reversal!TSCO is approaching its resistance at 227.8 (61.8% Fibonacci extension, 50% Fibonacci retracement, horizontal pullback resistance) where it is expected to reverse down to its support at 207.8 (50% Fibonacci retracement, horizontal overlap support).
Stochastic (55, 5, 3) is approaching its resistance at 94% where a corresponding reversal is expected.
Reasonable chance for a fifth waveI think we can assume a fifth wave and buy at just abobe 0.382 level of third wave. I just cant see five waves being complete in this structure
Based on:
Elliot structure
TESCO - (TSCO) Every Little HelpsA 2019/2020 crash would have many casualties, With their huge debt and market saturation from competitors, Tesco could be one of them , too big to fail? A monthly close below 148 = a sudden drop into 'no mans land' and potential disaster for the company, 28p may or may not hold the weight of the fall.
TSCO Approaching Support, Potential Bounce!TSCO is approaching its support at 189.75 (76.4% & 61.8% Fiboncci retracement, horizontal overlap support) where it could potentially bounce to its resistance at 207.00 (61.8% Fibonacci retracement, horizontal overlap resistance).
Stochastic (89, 5, 3) is approaching its support at 2.2% where a corresponding bounce could occur.
TSCO Testing Support, Potential Bounce!TSCO is testing its support at 189.75 (61.8% Fibonacci extension, 76.4% Fibonacci retracement, horizontal overlap support) where price is expected to bounce up to its resistance at 207.00 (61.8% Fibonacci retracement, horizontal pullback resistance).
Stochastic (89, 5, 3) is testing its support at 2.2% where a corresponding bounce is expected.
TSCO Testing Support, Potential Bounce!Tsco is testing its support at 195.20 (61.8% Fibonacci extension , 76.4% Fibonacci retracement , horizontal swing low support) where it could potentially rise to its resistance at 220.65 (38.2% Fibonacci retracement , horizontal swing high resistance).
Stochastic (89, 5, 3) is testing its support at 2.5%.
TSCO Testing Support, Potential Rise!Tsco is testing its support at 195.20 (61.8% Fibonacci extension, 76.4% Fibonacci retracement, horizontal swing low support) where it could potentially rise to its resistance at 220.65 (38.2% Fibonacci retracement, horizontal swing high resistance).
Stochastic (89, 5, 3) is testing its support at 2.5%.
TSCO Stock is it the SKY or the CRUSH?Hello Guys,
At times bad with crypto, I try to look into other markets and see if there is any opportunity for use because all we need for profit, is volatility. Now we have the TSCO stock on the chart and what we see is long bear market going on. Now, NASDAQ, APPL and most of the other big companies had a fall in their price recently and as for the past times everyone has been talking about the next big crash coming some of us started to think this was the first hit of the big bear market which will cause the crash. But the problem with TSCO is that it started falling and its bear market way before the hit took NASDAQ, APPL and other companies. So, IMO if there will be another hit on the stocks globally than we can see TSCO price crashing its support area of 170-200 and testing lower areas. So all we have to do now is sit and wait to see which scenarios plays out? Is it the SKY, meaning there will be no next big hit and this was retracement continued by the bulls and we will see TSCO reversing, or is it the CRASH? T
Thank, you. Share, Like, Follow, and Comment on what your thoughts are?
What type of correction are we in? It seems that Tesco has completed its five waves up in August and since hen has been doing a correction pattern. As for what the correction pattern is we have to look further. Which of the pattern I've drawn on the chart looks more accurate?
Tesco, earnings seasonThis week we have earnings released for Tesco, the chart technically gives us an opportunity as well. If we make it lower to the trend line and 200 SMA, it would give a great reward-risk ratio. Or sell through the trend line as well. Entry here is subjective and of course depends on the broker you use.
