Will AB Foods continue falling, or will it rise again back to recent 2460p recent highs?

• AB Foods shares have fallen over 9% in one week to trade 2200p (at time of writing).
• Shares falling after the company noted “challenging” Nov trading at its key Primark business.
• Shares -22.8% from 2018 highs; +2.5% from 2018 lows; -22.1% year-to-date.
• Recent share price range: Dec highs 2460p; now trading at recent lows.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading AB Foods – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 2460p. You decide to buy exposure to £10,000 worth of AB Foods using a CFD, at the current price of 2200p. To do this, you need £2,000.

Let’s assume AB Foods recovers back to 2460p (+11.8%). Your profit would be £1180, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. AB Foods falls 4% and hits your stop-loss. Your loss would be £400.

This is provided for information purposes only. It should not be taken as a recommendation.