Will Sainsbury continue falling, or will it recover to 232p?

• Sainsbury is down 8.5% since yesterday’s high of 232p.
• Price at 212p (at time of writing).
• Can the stock recover 9.4% to 232p?
• Shares -27.2% from 2019 highs, +0.9% from 2019 lows; -19.1% year-to-date.
• Apr 25: UK CMA blocks Sainsbury-ASDA merger.
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Sainsbury – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 232p. You decide to buy exposure to £10,000 worth of Sainsbury using a CFD, at the current price of 212p. To do this, you need £2,000.

Let’s assume Sainsbury recovers back to 232p (+9.4%). Your profit would be £940, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Sainsbury rises 2% 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.