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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Tesco sales rise

Article By: ,  Financial Analyst
June 26, 2020 5:29 AM

Tesco sales rise 8% - Range bound trading strategy

Tesco, the groceries and general merchandise retailer, posted 1Q group revenue rose 8.0% on year at constant rates (+7.9% like-for-like) to 13.38 billion pounds. 

The company said: "Total sales in our UK & ROI business increased by 9.2%. Growth was most marked in online with sales up 48.5% for the quarter as a whole and the rate of growth increasing to nearly 100% by the end of May. 

Whilst any forecast is inherently uncertain, based on an assumption of a continued easing of lockdown restrictions in the UK, our current expectation is that Retail operating profit in the current year is likely to be at a similar level to 2019/20 on a continuing operations basis. 

We have increased our provision for potential bad debts at Tesco Bank and we now expect to report a loss for the Bank of between £(175)m and £(200)m for the 2020/21 financial year."

From a technical perspective, the stock price remains stuck in trading range between 221p and 235p. The 20-day simple moving average started to flatten out and the daily Relative Strength index (RSI, 14) is around its neutrality area at 50%. As long as 221p is support, a test of the upper end of the range at 235p can be expected. A break below 221p would deliver a bearish signal and would open a path to see 203.7p. Alternatively, a push above 235p would call for a new up leg towards 250p. 

Source: GAIN Capital, TradingView


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