A trading opportunity for you?

Will Tesco continue falling, or will it rise again back to 265p highs?

• Tesco shares have fallen by 6.4% today to trade 220p (at time of writing)
• The shares are 17% from August highs; 10% from September highs
• Shares -11.8% from 2018 highs; +23.8% from 2018 lows; +4.6% year to date
• Tesco today reported quarterly sales growth ahead of expectations but half year profits below
• The CEO says the company is on track to reduce costs by £1.5bn and hit medium targets.
• Source: Dow Jones, Bloomberg, Company News

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Trading Tesco – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 245p. You decide to buy exposure to £10,000 worth of Tesco using a CFD, at the current price of 220p. To do this, you need £2,000.

Let’s assume Tesco recovers back to 245p (+11.4%). Your profit would be £1140, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Tesco falls 4% and hits your stop-loss. Your loss would be £400.

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