Just Eat
Is this breakout a good trade for you?
Will Just Eat turn, or will it continue to rise to Jul highs of 887p?
- Breakout above resistance at 715p to trade 740p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 887p?
- Shares -20.5% from 2018 highs; +38.7% from 2018 lows; +26.4% year-to-date.
- 21 Jan: Delivery firm improved FY revenue target and narrowed profit guidance.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Just Eat – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to 887p . You decide to buy exposure to £10,000 worth of Just Eat using a CFD, at the current price 740p (at time of writing). To do this, you need £2,000.
Let’s assume the Just Eat trend continues upwards to 887p July highs (+19.9%). Your profit would be £1990, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Just Eat breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.