A trading opportunity for you?
Will Sainsbury continue falling, or will it recover to 236p?
- Sainsbury fell 12% from April highs of 236p.
- It is now trading 209p (at time of writing).
- Can the stock recover 12.9% to 236p?
- Shares -29.2% from 2019 highs, +0.7% from 2019 lows; -20.9% year-to-date.
- Apr 25: UK CMA blocks Sainsbury-ASDA merger.
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Sainsbury – An Example
Let’s say you feel that the stock is a bargain and you think could bounce back towards 236p. You decide to buy exposure to £10,000 worth of Sainsbury using a CFD, at the current price of 209p. To do this, you need £2,000.
Let’s assume Sainsbury recovers back to 236p (+12.9%). Your profit would be £850, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Sainsbury falls 4% and hits your stop-loss. Your loss would be £400.
This is provided for information purposes only. It should not be taken as a recommendation.