{"id":47022,"date":"2026-01-21T11:35:53","date_gmt":"2026-01-21T11:35:53","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/01\/21\/tesco-share-price-is-stuck-in-a-correction-can-it-bounce-back-soon-2\/"},"modified":"2026-01-21T11:35:53","modified_gmt":"2026-01-21T11:35:53","slug":"tesco-share-price-is-stuck-in-a-correction-can-it-bounce-back-soon-2","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/01\/21\/tesco-share-price-is-stuck-in-a-correction-can-it-bounce-back-soon-2\/","title":{"rendered":"Tesco share price is stuck in a correction: can it bounce back soon?"},"content":{"rendered":"
<\/div>\n

The Tesco share price pulled back and moved into a correction, falling by 11% from its highest level in November last year. It was trading at 425p on Wednesday, down from the all-time high of 481p. This article explains what to expect as technicals point to more downside in the near term.<\/p>\n

Tesco share price technical analysis <\/h2>\n

The daily timeframe chart shows that the TSCO stock price has pulled back in the past few months, moving from a high of 481p in November to the current 424p.<\/p>\n

It has dropped below the 23.6% Fibonacci Retracement level at 438p, while the Supertrend indicator has turned red. Additionally, the stock has moved below the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bears are in control.<\/p>\n

At the same time, the stock has formed a bearish flag pattern, which is characterized by a vertical line and a small ascending channel.<\/p>\n

Therefore, the most likely scenario is where the stock continues falling, with the next key targets being at the 38.2% and the 50% retracement levels at 411p and 390p, respectively.<\/p>\n

The bearish outlook will become invalid if the stock rebounds above the 23.6% retracement level at 438p. A move above that level will point to more gains, potentially to the all-time high of 481p.<\/p>\n

TSCO stock chart | Source: TradingView\u00a0<\/em><\/figcaption><\/figure>\n

Tesco has strong fundamentals <\/h2>\n

Tesco share price has pulled back in the past few months as investors booked profits after a strong surge that saw it rise from a low of 300p in April to a high of 481p in November.<\/p>\n

The company still has some strong fundamentals, meaning that the bearish technicals will create a good entry point for long-term investors.<\/p>\n

For one, the company will likely benefit from the rising inflation in the UK. Data released on Wednesday showed that the country\u2019s retail price index (RPI) rose from minus 0.4% in November to 0.7% in December last year. This growth translated to an annual increase of 4.2%, its highest level in months. <\/p>\n

More data showed that the headline Consumer Price Index<\/a> (CPI) rose from 3.2% in November to 3.4% in December, while the core CPI remained at 3.2%.<\/p>\n

Tesco benefits from a high inflation environment because of the perception that it offers cheap prices. Also, the company benefits from the relatively higher margins.<\/p>\n

Tesco\u2019s business is doing relatively well as evidenced by the recent third quarter and Christmas trading statement<\/a>. The numbers showed that the company’s sales rose by 3.1% in the third quarter, with the Christmas sales rising by 2.4%.<\/p>\n

The company has also continued to grow its market share, which has jumped to the highest level in over a decade, helped by investments across the shopping trip and its price match features. Also, it has benefited from the investments in online sales, which rose by 11%.<\/p>\n

The company continues to reward its shareholders through buybacks and dividends. It is about to complete its \u00a31.45 billion share buyback program, while the dividend yield has risen to 3.35%<\/p>\n

The post Tesco share price is stuck in a correction: can it bounce back soon?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The Tesco share price pulled back and moved into a correction, falling by 11% from its highest level in November last year. It was trading at 425p on Wednesday, down from the all-time high of 481p. This article explains what to expect as technicals point to more downside in the near term. Tesco share price <\/p>\n","protected":false},"author":1,"featured_media":47023,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-47022","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/47022","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=47022"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/47022\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/47023"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=47022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=47022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=47022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}