Stock of the day: Tesco

By Tomasz Wisniewski|

Published: March 02 2022, 09:03 GMT+0

Stock of the day: Tesco

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In today’s analysis we have Tesco, one of the biggest retailers in Europe, where we can see a rather negative setup. It goes in line with the overall bearish sentiment on the market right now.

On the chart, we currently see a massive Head and Shoulders pattern (yellow). Interestingly, the left shoulder was being formed in December, the head in January and the right shoulder in February. The formation is already up and running as the neckline of this formation (black) was broken on the 21st of February. That gave us a sell signal.

A sell signal was later confirmed on the 1st of March, when the price came back to test the neckline as a closest resistance. The test was great for sellers as it ended with creating a very nasty pessimistic candlestick with a long upper wick and a long bearish body.

The sentiment is definitely negative and will stay this way as long as the price stays below the black neckline (which at the same time is the up trendline). The sell signal will be cancelled, when the price comes back above the mentioned resistance but chances for that are now limited.

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