Tesco Analysis

Thought i would take a look at the technical story behind Tesco, a colossal retailer that had a tough time of it lately. I have owned this share outright in the past as part of my investment portfolio but thankfully jumped ship with a small profit a while back in early 2013

Long Term - Bearish Bias. The monthly chart shoes that the strong resistance level (~290) was broken earlier in the year and we have seen further falls in price action down to 229. RSI / MACD and Stochastics are still making new lows and momentum would still seem to be with the bears. If already short, suggest keeping the position and adding on further breakouts to the downside upon any consolidation 

Medium Term - Clear downtrend in play on the weekly chart with a series of lower highs and lower lows being made since Sept 13 and the price action trading below the 50MA. Price has paused over the last 3 periods so suggest waiting to see if we have a pullback before resuming the downtrend or to look to go short with any further breaks to the downside below 220

Short Term - Bearish trend since end of 2013 when we saw the 50MA cross below the 200MA indicating that momentum is with the bears. However the price action had consolidated since gapping down late Augusts and I've noted a bullish divergence with the RSI which may indicate we are due a correction or atleast a pause in the downside momentum. If this occurs I would suggest waiting for a decisive break either way before either going short or monitoring to see whether we have a reversal or pullback before the downtrend continues. 

Price targets are difficult to determine from a technical perspective as we are in price areas last occupied in 2003. No clear trade entries at present but outlook is consistently bearish though possibly some positive retracement in the short term