Is this trend a good trading opportunity?
Will AB Foods turn, or will it continue to rise to 2845p June highs?
- Shares +14% in 6 weeks to trade 2548p (at the time of writing)
- Will the positive momentum continue to 2845p?
- Shares -0.6% from 2019 highs; +26.7% from 2019 lows; +24.7% year-to-date.
- 11 Apr: Primark opens world’s largest retail fashion store in UK
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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 2548p. To do this, you need £2,000.
Let’s assume the AB Foods trend continues to 2845p (+11.6%). Your profit would be £1160, 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.