Will Tesco turn, or will it continue to rise towards 245p?

• Breakout above 229p; Now trading 232p (at time of writing).
• Could they recover to prior highs of 245p?
• Shares -0.9% from 2019 highs; +23.3% from 2019 lows; +22% year-to-date
• 20 Feb: HSBC says Sainsbury-Asda merger to face block, rivals well-placed
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Tesco – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 245p. You decide to buy exposure to £10,000 worth of Tesco using a CFD, at the current price of 232p. To do this, you need £2,000.

Let’s assume the Tesco trend continues to highs of 245p (+5.6%). Your profit would be £560, 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. Tesco breaks lower, falling 2% and it hits your stop-loss. Your loss would be £200.

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