Will Ocado break lower, or will it rise back to 867p highs again?

• Ocado shares are trading in 750-867p range since early October.
• Bounced off support zone 3 times, most recently today.
• Now trading 770p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -34.3% from 2018 highs; +96.2% from 2018 lows; +94% year-to-date
• 1 Nov: Ocado , B&M Homestores now bound by UK Groceries supply code
• 30 Oct: US partner Kroger picking robotic warehouse sites
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Ocado – An Example

Let’s say you like the range, you think it’s heading back towards 867p again. You decide to buy exposure to £10,000 worth of Ocado using a CFD, at the current price of 770p. To do this, you need £2,000.

Let’s assume Ocado rises back to 867p (+12.6%). Your profit would be £1260, 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. Ocado 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.