Will Ocado turn, or will it continue to rise to Summer ’18 highs of 1149p?

• Shares +26% since Christmas.
• Broken above November highs.
• Now trading at 924p (at the time of writing)
• Will the positive momentum continue?
• Shares -1.3% from 2019 highs; +19.7% from 2019 lows; +17% year-to-date.
• 22 Jan: Interactive Investor says traders report a “program trade” to buy grocers.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Ocado – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Ocado using a CFD, at the current price of 924p. To do this, you need £2,000.

Let’s assume the Ocado trend continues to Summer ’18 highs of 1149p (+24.3%). Your profit would be £2430, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Ocado falls 8% and hits your stop-loss. Your loss would be £800.

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