Will Tesco break support, or will it rise again back to highs of 244p?

• Tesco has shallow rising support since mid-October
• Now trading 215p (at time of writing).
• Will the pattern repeat, the shares climbing back towards 244p?
• Shares -19.3% from 2018 highs; +13.2% from 2018 lows; +3% year-to-date.
• 4 Oct: Jefferies says Tesco’s Thailand shortfall can be recovered
• Tesco is the biggest UK Supermarket; just launched new discount Jack’s to compete with Lidl and Aldi
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Tesco – An Example

Let’s say you like the Tesco chart and you think the price is heading back towards 244p again. You decide to buy exposure to £10,000 worth of Tesco using a CFD, at the current price of 215p. To do this, you need £2,000.

Let’s assume Tesco rises back to 244p (+13.5%). Your profit would be £1350, 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. Tesco 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.