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!
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!
Comment:
TP2 hit.
Comment:
TP3 approaching!
Comment:
TP3 basically hit!
Sorry for the delayed updates!
Sorry for the delayed updates!
Very nice trade and setup!