A range trading opportunity for you?
Will Ocado break lower, or will it rise back to 1270p?
- Ocado shares are trading in a rising range since late June. The range has been between 1070p – 1270p
- Bounced from support zone 3 times, most recently this week.
- Now trading 1187p (at time of writing)
- Will the pattern repeat itself, testing previous lows?
- Shares -17.5% from 2019 highs; +42% from 2019 lows; +27% year-to-date
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Ocado – An Example
Let’s say you like the range, you think it’s heading back towards 1270p again. You decide to buy exposure to £10,000 worth of Ocado using a CFD, at the current price of 1187p. To do this, you need £2,000.
Let’s assume Ocado rises back to 1295p (+7%). Your profit would be £700, 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. 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.