Tesco is gaining more and more strength as it attempts to release itself from the consolidation zone. In my previous post , price had broken through a resistance level.
The next level we need price to break is the resistance level of the consolidation zone. Should price fail to break that level then price may remain within the consolidation zone for a while longer or it could attempt to break through the consolidation support level.
Price remains above the 50 & 200 simple moving averages on the Weekly and Daily timeframes so the bias is bullish. Remember that we can not predict which way the market will go and this is why we need a breakout to confirm trend direction. If price breaks above the resistance level then this gives us the confirmation that there should be more movement to the upside and puts the odds of a profitable long trade in our favour.
Lets wait and see what happens with Tesco going forward.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!