Will Morrison’s continue falling, or will it recover to 246p Feb highs?

• Morrison’s shares as low as -10.7% from February highs.
• Trading close to 118p early Jan support zone.
• Now trades 221p (at time of writing).
• Shares -10.2% from 2019 highs; +5.8% from 2019 lows; +3.8% year-to-date.
• Can the stock recover to recent highs?
• 13 Mar: Edison says Morrison’s stands out among UK grocers with a well-controlled balance sheet.
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Morrison’s – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 246p. You decide to buy exposure to £10,000 worth of Morrison’s using a CFD, at the current price of 221p. To do this, you need £2,000.

Let’s assume Morrison’s recovers back to 246p Feb highs (+11.3%). Your profit would be £1130, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Morrison’s falls 4% and hits your stop-loss. Your loss would be £400.

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