AB Foods
A range trading opportunity for you?
Will AB Foods break lower, or will it rise back again to 2579p?
- Sideways channel range since April.
- Now trading 2447p (at time of writing)
- Will the pattern repeat itself, testing previous 2579p highs?
- Shares -5.3% from 2019 highs; +21.8% from 2018 lows; +19.8% year-to-date
- 3 Jun: ABF forms JV with Wilmar for China Yeast Business
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading AB Foods – An Example
Let’s say you like the range, you think it’s heading back towards 2579p again. You decide to buy exposure to £10,000 worth of AB Foods using a CFD, at the current price of 2447p. To do this, you need £2,000.
Let’s assume AB Foods rises back to 2579p (+5.3%). Your profit would be £530, 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. AB Foods 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.