Will Sainsbury continue falling, or will it recover to 236p?

• Sainsbury fell 12% from April highs of 236p.
• It is now trading 209p (at time of writing).
• Can the stock recover 12.9% to 236p?
• Shares -29.2% from 2019 highs, +0.7% from 2019 lows; -20.9% 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 236p. You decide to buy exposure to £10,000 worth of Sainsbury using a CFD, at the current price of 209p. To do this, you need £2,000.

Let’s assume Sainsbury recovers back to 236p (+12.9%). 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 4% from the current price. Sainsbury falls 4% and hits your stop-loss. Your loss would be £400.

This is provided for information purposes only. It should not be taken as a recommendation.