Will Sainsbury continue falling, or will it recover to 240p?

• Sainsbury fell 12% recently from April highs of 240p.
• It has already bounced 4.9% to trade 221p (at time of writing).
• Can the stock recover 8.5% to 240p?
• Shares -24.9% from 2019 highs, +4.9% from 2019 lows; -16% 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 240p. You decide to buy exposure to £10,000 worth of Sainsbury using a CFD, at the current price of 221p. To do this, you need £2,000.

Let’s assume Sainsbury recovers back to 240p (+8.5%). Your profit would be £850, 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 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.