Will Persimmon turn, or will it continue to rise to October high of 245p?

• The chart shows the Tesco price action since mid-September .
• Shares in a 2-week uptrend from 187p lows; now at 218p.
• Shares -18.3% from 2018 highs; +16.5% from 2018 lows; -4.3% year-to-date.
• 10 Jan: Tesco emerges as UK grocery retail’s Christmas Winner
• In the past fortnight, the shares have risen over 16%. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Tesco – 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 Tesco using a CFD, at the current price of 218p. To do this, you need £2,000.

Let’s assume Tesco trend continues to September highs of 245p (+12.4%). Your profit would be £1240, 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. Persimmon 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.