Will Ocado break lower, or will it rise back to 1170p?

• Ocado shares are trading in a range since 11 July. The range has been between 1130p – 1170p
• Bounced from support zone 5 times, most recently this week.
• Now trading 11367p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -21% from 2019 highs; +39% from 2019 lows; +8.9% year-to-date
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Ocado – An Example

Let’s say you like the range, you think it’s heading back towards 1170p again. You decide to buy exposure to £10,000 worth of Ocado using a CFD, at the current price of 1136p. To do this, you need £2,000.

Let’s assume Ocado rises back to 1170p (+3%). Your profit would be £300, 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. Ocado 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.