Will AB Foods continue falling, or will it rise again back to recent 2460p recent highs?

• AB Foods shares have fallen almost 17% in December to trade 2054p (at time of writing).
• Shares in decline after company noted “challenging” Nov trading at its key Primark business.
• Although it has (7 Dec) backed FY Outlook and expectations for increase in Primark profits
• Retail sector concerns about Christmas trading
• Shares -28.7% from 2018 highs; +1.4% from 2018 lows; -27.7% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading AB Foods – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 2460p. You decide to buy exposure to £10,000 worth of AB Foods using a CFD, at the current price of 2054p. To do this, you need £2,000.

Let’s assume AB Foods recovers back to 2460p (+19.7%). Your profit would be £1970, 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. AB Foods 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.