A trading opportunity for you?
Will Ocado continue falling, or will it rise again back to 1437p highs?
- Shares -22% from April highs; support at 1119p
- Now trades 1131p (at time of writing).
- Shares -21.5% from 2019 highs; +46.5% from 2019 lows; +43.2% year-to-date.
- Can the stock recover to recent 1437p highs?
- 3 May: Ocado can be Microsoft of Retail says Peel Hunt
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Ocado – An Example
Let’s say you feel that the stock is a bargain and you think could bounce back towards April highs of 1437p. You decide to buy exposure to £10,000 worth of Ocado using a CFD, at the current price of 1131p. To do this, you need £2,000.
Let’s assume Ocado recovers back to 14376p April highs (+27%). Your profit would be £2700, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Ocado 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.