A range trading opportunity for you?

Will Morrison’s Supermarkets fall back to support, or will it rise again back to 270p?

• Morrison’s Supermarkets’ range has developed since mid-July
• Bounced off 253p zone 7 times. Now trading 259p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -4.4% from 2018 highs; +27.2% from 2018 lows; +18.2% year-to-date
• The shares pay a 3.85p/1.5% dividend on Thursday
• Analysts at AJ Bell (13 Sept) suggest Morrisons may consider merging if Sainsbury-Asda Deal Approved

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Trading Morrison’s Supermarkets – An Example

Let’s say you like the range, you think it’s heading back towards 270p again. You decide to buy exposure to £10,000 worth of Morrison’s Supermarkets using a CFD, at the current price of 259p. To do this, you need £2,000.

Let’s assume Morrison’s Supermarkets recovers back to 270p (4.2%). Your profit would be £420, 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. Morrison’s Supermarkets 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.