Will Morrisons break support, or will it rise again to 229p?

• 209p support since Christmas; 3 bounces to trade 212p (at time of writing).
• Will the pattern repeat, the shares climbing back towards 229p?
• Shares -14.3% from 2019 highs; +1% from 2019 lows; -19% year-to-date.
• 9 May: Morrisons sales slow, expects market to remain competitive, challenging
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Morrisons – An Example

Let’s say you like the Morrisons chart and you think the price is heading back towards 229p again. You decide to buy exposure to £10,000 worth of Morrisons  using a CFD, at the current price of 212p. To do this, you need £2,000.

Let’s assume Morrisons rises back to 229p highs (+8%). Your profit would be £800, 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. Morrisons 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.