Ocado
Is this breakout a good trade for you?
Will Ocado turn, or will it continue to rise towards 1437p (12%)?
- Breakout above 1243p to trade 1278p (at time of writing).
- The ‘trend is your friend’. Will it continue towards April highs of 1437p (+12%)
- Shares -11.0% from 2019 highs; +65.9% from 2019 lows; +62.3% year-to-date.
- 9 Jul: Ocado looks like the new Alphabet: Peel Hunt
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Ocado – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to . You decide to buy exposure to £10,000 worth of Ocado using a CFD, at the current price 1278p (at time of writing). To do this, you need £2,000.
Let’s assume the Ocado trend continues upwards to 1437p highs (+12%). Your profit would be £1200, 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. Ocado 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.