Will Tesco turn, or will it continue to rise to September highs of 245p?

• Tesco shares are +20% since Christmas.
• Now trading at 223p (at the time of writing)
• Will the strong positive momentum continue?
• Shares -2.2% from 2018 highs; +17.2% from 2018 lows; +17.4% year-to-date.
• 10 Jan: Tesco beat expectations for Q3/Christmas sales growth
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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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 223p. To do this, you need £2,000.

Let’s assume Tesco trend continues to September highs of 245p (+9.8%). Your profit would be £980, 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. Tesco 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.