A trading opportunity for you?

Will Ocado continue falling, or will it rise again back to recent 921p September highs?

• Ocado shares have fallen over 15% in the past 3 weeks to trade 782p (at time of writing).
• Shares -29.2% from 2018 highs; +111.4% from 2018 lows; +96.8% year-to-date.
• The online retailer has been hurt by disappointing overnight results from the US Tech sector.
• Tech giants Amazon and Alphabet (Google’s parent company) missed expectations on revenue and noted uncertain outlook.
• Sector read-across is hurting other online platforms like Ocado.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Ocado – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 921p. You decide to buy exposure to £10,000 worth of Ocado using a CFD, at the current price of 782p. To do this, you need £2000.

Let’s assume Ocado recovers back to 921p (+17.8%). Your profit would be £1780, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Ocado 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.