Will Tesco continue falling, or will it rise again back to 231p last week’s highs?

• Tesco shares -7% in 1 week (flat today), trading around mid-Jan support level.
• 5 Feb: Kantar reported Tesco sales rising in the past 12-weeks, though market share fell.
• Now trades 218p (at time of writing).
• Shares -5.9% from 2019 highs; +15.8% from 2019 lows; +14.9% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Tesco – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 231p recent highs. You decide to buy exposure to £10,000 worth of Tesco using a CFD, at the current price of 218p. To do this, you need £2,000.

Let’s assume Tesco recovers back to 231p last week’s highs (+5.9%). Your profit would be £590, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Tesco falls 3% and hits your stop-loss. Your loss would be £300.

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