A range trading opportunity for you?

Will Ocado break support, or will it rise again back to 1142p?

• Range developed over last 5 months.
• Bounced off 914p zone 3 times since mid-June. Now trading at 938p (at time of writing)
• Shares trading up off lowest since mid-June
• Will the pattern repeat itself, testing previous highs?
• Shares -21.5% from July’s record highs; +134% from 2018 lows; shares +136% year-to-date
• Company announced positive Q3 trading update this morning
• Signed several technology deals with foreign supermarkets

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Trading Ocado – An Example

Let’s say you like the range, you think it’s heading back towards 1142p again. You decide to buy exposure to £10,000 worth of Ocado using a CFD, at the current price of 938p. To do this, you need £2,000.

Let’s assume Ocado recovers back to 1142p. Your profit would be £2,1474, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price, at 891p. Ocado falls 5% and hits your stop-loss. Your loss would be £500.

This is provided for information purposes only. It should not be taken as a recommendation.