Will AB Foods turn, or will it continue to rise to 2655p November highs?

• Shares +10% in 3 weeks
• Now trading 2498p (at the time of writing)
• Will the positive momentum continue to 2655p?
• Shares trade 2019 highs; +22% from 2019 lows; +19.75% year-to-date.
• 20 Mar: RBC says: “We would prefer to buy AB Foods […] for likely stronger full-price sales with additional cash returns”
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading AB Foods – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of AB Foods using a CFD, at the current price of 2445p. To do this, you need £2,000.

Let’s assume the AB Foods trend continues to 2655p (+9%). Your profit would be £900, 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. AB Foods 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.