Tesco (LON: TSCO) share price has pulled back in the past few days as traders wait for the upcoming interim results. The shares retreated to a low of 259.1p on Tuesday, sharply lower than the year-to-date high of 277.7p. 

Tesco stock price has come under intense pressure as investors remain concerned about the UK’s economy. The sell-off gained steam recently when JP Morgan downgraded the stock from overweight to neutral. 

The next key catalyst for Tesco shares will be the upcoming interim results scheduled for Wednesday. These results will likely show that the company’s growth slowed in the quarter as the cost of living crisis continued. 

The most recent results, which were published in June, showed that the group’s revenue rose to £14.8 billion. Its UK division rose to £10.8 billion while its central Europe sales rose by just 1.1% to £1.04 billion.

The most recent economic numbers have shown that UK’s retail sales have been under pressure as the cost of living crisis intensified. Tesco tends to do well in such periods because of its scale and price cuts.

Financial results by other UK retailers have sent a mixed picture about the industry. For example, fast fashion companies like Boohoo and Asos have reported weak results recently. On the other hand, Ocado published modestly strong results, helped by discounts.

Most analysts are bullish on the Tesco share price. According to MarketScreener, 9 analysts have a buy or outperform rating while 3 have a hold rating.

The daily chart shows that the TSCO stock price has been in a strong bearish trend in the past few days. Despite the pullback, the shares have remained above the 100-day exponential moving average (EMA).

The stock has also formed an ascending channel and is now at its lower side. This price is at the highest swing on March 10th. The Relative Strength Index (RSI) has crashed below the neutral point of 50. 

Therefore, the outlook for the stock is bearish, with the next level to watch being the key support at 245.6p, the lowest level in July and August. If this happens, the shares will drop by more than 5.60%. 

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