A range trading opportunity for you?

Will Just Eat Supermarkets fall back to support, or will it rise again back to 887p?

• Just Eat’s range has developed since last October
• Bounced off 645p zone 3 times. Now trading 687p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -24.5% from 2018 highs; +6.2% from 2018 lows; +12.1% year-to-date
• Uber said to be in talks to buy UK. Food-delivery Company Deliveroo (21 Sept, Dow Jones)

Click to enlarge

Trading Just Eat – An Example

Let’s say you like the range, you think it’s heading back towards 887p again. You decide to buy exposure to £10,000 worth of Just Eat using a CFD, at the current price of 687p. To do this, you need £2,000.

Let’s assume Just Eat recovers back to 887p (+29.1%). Your profit would be £2910, 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. Just Eat falls 5% 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.