Will AB Foods turn, or will it continue to rise beyond 2554p?

• The chart shows the last 4.5 month’s price action for AB Foods
• The shares have broken above a resistance level at 2486p to trade 2554p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares rise back June 2842p highs?
• Shares -15.3% from 2018 highs; +12.5% from 2018 lows; -9.4% year-to-date.
• 6 Nov: Citi says AB Food’s FY results were robust and Primark guidance will reassure.
• 6 Nov: RBC says AB Foods’ Primark still undervalued compared to peers.
• 6 Nov: Liberum says AB Foods set for growth despite mixed FY 2019 outlook.
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading AB Foods – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of AB Foods using a CFD, at the current price of 2554p. To do this, you need £2,000.

Let’s assume the AB Foods trend continues upwards to 2842p (+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 3% from the current price. AB Foods breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.

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