Tesco
Is this trend a good trading opportunity?
Will Tesco turn, or will it continue to rise to 2019 levels of 266p (+6.5%)
- Shares +30% from December lows;
- Now trading 248p (at time of writing);
- Will the positive momentum continue towards 2018 levels of 266p (+6.5%)
- Brexit sensitve stocks having a boost due to the deadline extension announced today (11th April).
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading Tesco – 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 Tesco using a CFD, at the current price of 248p. To do this, you need £2,000.
Let’s assume the Tesco trend continues to 2018 levels of 266p (+7%). Your profit would be £700 from your initial investment of £2000.
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.