Will Ocado turn, or will it continue to rise to 1400p new record highs?

• Shares +46% in 4 weeks.
• Shares trading just off all-time highs.
• Now trading 1229p (at the time of writing).
• Will the positive momentum continue to 1400p new record highs?
• Shares -4.3% from 2019 highs; +59% from 2019 lows; +55.5% year-to-date.
• 19 Mar: Numis says they infer strong underlying growth trend from Ocado’s latest results
• 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 1229p. To do this, you need £2,000.

Let’s assume the Ocado trend continues to 1400p new record highs (+13.9%). Your profit would be £1390, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Ocado falls 5% and hits your stop-loss. Your loss would be £500.

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