Will AB Foods turn, or will it continue beyond 2845p summer high?

• The chart shows the AB Foods price action since late July.
• Shares in a 2-month uptrend from 2186p September lows; now at 2618p.
• Shares -11.7% from 2018 highs; +17.3% from 2018 lows; -7.36% year-to-date.
• Latest results were solid with sales and margins rising at Primark despite poor weather and tough trading in its sugar business.
• The shares have risen over 15% in the past 5 weeks. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading AB Foods – 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 AB Foods using a CFD, at the current price of 2618p. To do this, you need £2,000.

Let’s assume AB Foods trend continues to the 2845p summer high (+8.6%). Your profit would be £860, 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. AB Foods 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.