J Sainsbury reports results on Wednesday, 9 January

• The chart shows the price movement last time Sainsbury reported: H1 Results, 8 Nov.
• Shares opened nearly flat (+0.9p/0.3%), fell to as low as -4.1p (-1.3%) then rose as high as +4.9p (+1.5%).
• The shares closed +4.9p (+1.5%) for a daily range of 9.9p or 3.1%.
• Sainsbury reported 3.5% sales growth for its first half.
• Retailer said it’s on track to meet FY targets despite consumer uncertainty
• Shares -2.4% from 2019 highs; +1% from 2018 lows; +1% year-to-date.
• Sainsbury publishes Q3 Trading Update on Wednesday, 9 Jan.
• Will we see another big move?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Sainsbury – An Example

Let’s say you think that Sainsbury results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Sainsbury using CFDs, at the current price of 267p. To do this, you need £2,000.

For the purpose of this example, let’s assume Sainsbury reports strong results and the shares rise 10%. Your profit would be £1,000, from your initial investment of £2,000.

Conversely, let’s assume you open the position, and place a stop-loss 5% below the current price. Sainsbury results miss, it falls 5% and hits your stop-loss. Your loss would be £500.

This is provided for information purposes only. It should not be taken as a recommendation.