Tesco plc TSCO

Tesco shares face a sticky level of resistance which could block advances beyond current levels.

I am talking about the region lying just below 220p – charts show that TSCO’s July rally showed this round figure a great deal of respect on the approach with consolidation setting in.

The price action we are currently witnessing appears to be a repeat of late June trade when the same level was tested, breached, and then collapsed.

History has a tendency of repeating itself; hence the popularity of technical analysis. The question now is whether the present break above 220p can hold.

Momentum studies indicate that the bulls hold the initiative: Tesco plc is trading above its 21 day moving average while we see no less than 6 applicable bullish signals in play.

The most recent - Triple Moving Average Crossover (4-day 9-day 18-day) – was particularly potent.

We believe that in the current environment that is devoid of volatility momentum could well see 220p hold as technical considerations grow in importance.

Non-Doms Urged to Get Tax Affairs in Order

Turning to corporate affairs, the clock is ticking for Britain’s non-doms and they should urgently consider reviewing their tax affairs, warns one of the world’s largest independent financial advisory organisations.

Neil Walker, Global Head of Tax at deVere Tax Consultancy, part of deVere Group, is speaking out after the Chancellor announced in his first Conservative-only Budget that the permanent non-dom status is being scrapped from 2017.

Mr Walker comments: “Approximately 116,000 UK residents currently enjoy the benefits of the UK’s non-dom tax status, which dates back to around the times of the Napoleonic wars. 

“However, in a bid to demonstrate ‘we are all in this together’, this tax perk is now being abolished by George Osborne.

“Despite it not being scrapped until 2017, non-doms should urgently consider reviewing their tax affairs as the clock is ticking to put all the legitimate available measures in place in order to mitigate the effect of the new, controversial rules. 

“There are a raft of ways that the impact can be mitigated, but the options will invariably become narrower the closer we come to the cut-off point and, due to the complexities of each individuals’ status, the time to act is now. In addition, and importantly, it remains unclear if the changes being brought in will be retrospective.”

“The non-dom status remains for the first 15 years and, therefore, the UK should stay a low tax environment for most Britain-based expats if their affairs are correctly structured.

“These non-doms will also need specialist advice and assistance to complete their tax returns, which are set to become more involved.” 

“The new rules open the doors to so called non-dom boomeranging, which is the process of moving out of the UK for a few years and then returning in order to refresh your domicile status.