Will Morrisons continue falling, or will it rise again back to recent 250p November highs?

• Morrisons shares -16% from late November highs; -3.6% today after Christmas trading update
• Currently trading at 211p (at time of writing).
• Christmas sales growth beat forecasts, but only because Wholesale strength offset Retail weakness
• Shares -18.8% from 2018 highs; +8.0% from 2018 lows; -0.9% year-to-date.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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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 211p. To do this, you need £2,000.

Let’s assume Morrisons recovers back to 250p (+18.4%). Your profit would be £1840, 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.