Ocado
Is this trend a good trading opportunity?
Will Ocado turn, or will it continue to rise to 1161p July ’18 highs?
- Shares +27% in less than 3 weeks.
- Broken above 1041p 2019 highs.
- Now trading 1093p (at the time of writing).
- Will the positive momentum continue to 1161p July ’18 highs?
- Shares -1.68% from 2019 highs; +41.9% from 2019 lows; +38.7% year-to-date.
- 27 Feb: Jefferies says JV with M&S ensures 4% returns for Ocado bonds.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading Ocado – 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 Ocado using a CFD, at the current price of 1093p. To do this, you need £2,000.
Let’s assume the Ocado trend continues to 1161p July ’18 highs (+6.2%). Your profit would be £620, 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 falls 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.