Will Ocado continue falling, or will it rise again back to 1437p highs?

• Shares -22% from April highs; support at 1119p
• Now trades 1131p (at time of writing).
• Shares -21.5% from 2019 highs; +46.5% from 2019 lows; +43.2% year-to-date.
• Can the stock recover to recent 1437p highs?
• 3 May: Ocado can be Microsoft of Retail says Peel Hunt
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Ocado – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards April highs of 1437p. You decide to buy exposure to £10,000 worth of Ocado using a CFD, at the current price of 1131p. To do this, you need £2,000.

Let’s assume Ocado recovers back to 14376p April highs (+27%). Your profit would be £2700, from your initial investment of £2,000.

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.