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Trade idea: Buy Tesco as its stock will rise
Richard Perry from Central Markets is looking to buy British supermarket chain Tesco, as he believes its stock will "go higher". He also says Tesco broke out around 376p on Tuesday, a key resistance level, and that moving averages are rising in a bullish sequence.
As a result, Richard is looking to long into any weakness towards 376p, place a stop below 369p and his target is 391.5p.
Tesco has faced some controversy over the summer period; earlier this month Britain's advertising watchdog ruled that Tesco misled consumers with a press campaign on its response to the horsemeat scandal. And in August, the firm was fined GBP 300,000 by a British court for misleading consumers over the pricing of strawberries.
In June Tesco, the world's No. 3 retailer, posted a drop in quarterly underlying sales in its main British market, raising doubts about its GBP 1 billion turnaround plan.
The company has been investing heavily in more staff, new food ranges, revamped stores and lower prices.
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00:48 minutes
Tags: bullish, bullish configuration, consumer, consumer industry, groceries, london stock exchange, lse, macd, price, richard perry, rsi, shares, stock, supermarkets, tablets, target, technology, tesco, the guardian, uk, uk economy