Tesco
Is this breakout a good trade for you?
Will Tesco turn, or will it continue to towards 245p?
- Breakout above resistance at 219p to trade 223.5p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 245p?
- Shares -16.5% from 2018 highs; +19.1% from 2018 lows; +17.6% year-to-date.
- 22 Jan: Berenberg says risks in Tesco’s international business over-estimated
- 10 Jan: Jefferies says Tesco triumphant in Christmas trading
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Tesco – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Tesco using a CFD, at the current price of 223p. To do this, you need £2,000.
Let’s assume the Tesco trend continues upwards to 245p (+9.8%). Your profit would be £980, 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 breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.