Will Morrisons break support, or will it rise again back to 270p highs?

• Morrisons has a rising support level since mid-June, with the latest bounce off 244p yesterday.
• Now trading 249p (at time of writing).
• Shares -8.3% from 2018 highs; +22% from 2018 lows; +13.3% year-to-date.
• In the latest Kantar Grocery Market survey, Morrisons maintained its market shares, while rivals Tesco and Sainsbury lost ground.
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Morrisons – An Example

Let’s say you like the Morrisons chart and you think the price is heading back towards 270p again. You decide to buy exposure to £10,000 worth of Morrisons using a CFD, at the current price of 249p. To do this, you need £2,000.

Let’s assume Morrisons rises back to 270p (+8.4%). Your profit would be £840, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Morrisons falls 9% and hits your stop-loss. Your loss would be £900.

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