Is this trend a good trading opportunity?
Will Ocado turn, or will it continue to rise to new highs of 1500? (+5.5%)
- Shares +90% from December lows; Breakout above 1400p
- Now trading 1422p (at time of writing);
- Will the positive momentum continue towards new highs of 1500p? (+5.5%)
- Shares at 2019 highs; +75% from 2019 lows; +200% year to date
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Ocado – 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 Ocado using a CFD, at the current price of 1422p. To do this, you need £2,000.
Let’s assume the Ocado trend continues to new highs of 1500p (+5.5%). Your profit would be £550 from your initial investment of £2000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Ocado 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.