Will Morrisons continue falling, or will it rise again back to recent 257p November highs?

• Morrisons shares have fallen 3.6% today after disappointing trading update.
• Currently trading at 245p (at time of writing).
• Shares -5.9% from 2018 highs; +25.2% from 2018 lows; +11.3% year-to-date.
• Recent share price range: Oct lows 243p; Oct highs 262p.
• Supermarket chain reported that Q3 sales growth slowed down from second quarter.
• Sales growth mostly driven by wholesale, with retail contributing 1.3% to quarterly growth.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Morrisons – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 257p. You decide to buy exposure to £10,000 worth of Morrisons using a CFD, at the current price of 245p. To do this, you need £2,000.

Let’s assume Morrisons recovers back to 257p (+4.8%). Your profit would be £480, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Morrisons falls 3% and hits your stop-loss. Your loss would be £300.

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