Will Morrisons turn, or will it continue to fall to March lows of 203p?

• The chart shows the Morrisons price action since late November.
• Shares in a 5-week downtrend from 250p late November highs; now at 211p.
• 6 Nov: Q3 sales missed market consensus after strong summer performance.
• Shares -1.2% from 2019 highs; now trading close to 2019 lows; -1.1% year-to-date
• In the last 5 weeks, the shares have fallen over 14.6%.
• Will this negative momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Morrisons – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to sell short exposure to £10,000 worth of Morrisons using a CFD, at the current price of 211p. To do this, you need £2,000.

Let’s assume the Morrisons trend continues to March lows of 203p (-3.8%). Your profit would be £380, 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. Morrisons rises 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.