Will Just Eat continue falling, or will it recover to 703p?

• Just Eat shares trade as low as -14% off this month’s highs following results.
• 17 May: Just Eat Shares Down 10% at 610p After Rival Deliveroo Gets Amazon Backing
• Now trades 624p (at time of writing).
• Shares -22.3% from 2019 highs; +9.2% from 2019 lows; +5.9% year-to-date.
• Can the stock recover to recent May highs of 703p?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

Click to enlarge

Trading Just Eat – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 703p. You decide to buy exposure to £10,000 worth of Just Eat using a CFD, at the current price of 624p. To do this, you need £2,000.

Let’s assume Just Eat recovers back to 703p (+12.9%). Your profit would be £1290, 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. Just Eat 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.