A trading opportunity for you?
Will Morrisons continue falling, or will it rise again back to recent 250p November highs?
- Morrisons shares -16% from late November highs; -3.6% today after Christmas trading update
- Currently trading at 211p (at time of writing).
- Christmas sales growth beat forecasts, but only because Wholesale strength offset Retail weakness
- Shares -18.8% from 2018 highs; +8.0% from 2018 lows; -0.9% year-to-date.
- Can the stock regain recent highs?
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Morrisons – An Example
Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 257p. You decide to buy exposure to £10,000 worth of Morrisons using a CFD, at the current price of 211p. To do this, you need £2,000.
Let’s assume Morrisons recovers back to 250p (+18.4%). Your profit would be £1840, 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. Morrisons 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.