Tesco reports results on Thursday, 10 Jan

• The chart shows the price movement last time Tesco reported: H1 Results, 3 Oct.
• The shares opened -12.7p (-5.4%), rebounded to -10.1p (-4.3%; high of the day) and fell as low as -23.2p (-9.9%).
• Shares closed -20.2p (-8.6%), for a daily trading range of 13.1p or 5.6%.
• Shares currently at 209p (at time of writing)
• 3 Oct: Results positive, but Hargreaves Lansdown said the market was “expecting more improvement”.
• Shares -24.1% from 2018 highs, +8.3% from 2018 lows, +10% year-to-date.
• Tesco issues a Q3 Trading Update on Thursday (10 Jan). Will we see another big move?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Tesco – An Example

Let’s say you think that Tesco results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Tesco using CFDs, at the current price of 209p. To do this, you need £2,000.

For the purpose of this example, let’s assume Tesco reports strong results and the shares rise 10%. Your profit would be £1000, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss 5% below the current price. Tesco results miss, it 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.