Will Just Eat continue falling, or will it recover to 780p?

• Just Eat shares trade as low as -5% off this week’s highs following results.
• 6 Mar: Food delivery firm swung to profit, but projected losses in Latin America
• Now trades 749p (at time of writing).
• Shares -3.6% from 2019 highs; +32% from 2019 lows; +28.2% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Just Eat – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 780p. You decide to buy exposure to £10,000 worth of Just Eat using a CFD, at the current price of 749p. To do this, you need £2,000.

Let’s assume Just Eat recovers back to 780p (+4.1%). Your profit would be £410, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Just Eat falls 2% and hits your stop-loss. Your loss would be £200.

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