Will Tesco turn, or will it continue rising to 245p Sept highs?

• Shares +25% since Christmas; +8.9% since mid-Feb
• Now trading 234p (at the time of writing).
• Will the positive momentum continue towards 245p Sept highs?
• Shares trade at 2019 highs; +24.5% from 2019 lows; +23.2% year-to-date.
• 20 Feb: HSBC says Sainsbury-Asda merger to face block, rivals well-placed
• 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 234p. To do this, you need £2,000.

Let’s assume the Tesco trend continues to 245p Sept highs (+4.7%). Your profit would be £470, 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. Tesco falls 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.