Morrisons
A trading opportunity for you?
Will Morrisons break support, or will it rise again back to 270p August highs?
- Morrisons has bounced off May support level at 243p
- Bounced 7 times, most recently bouncing off the support zone last week.
- Now trading 249p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 270p recent highs?
- Latest Kantar Grocery Market survey reported Morrisons market share unchanged in 12 weeks to 7 Oct, while rivals Sainsbury’s and Tesco both lost market share.
- Will the strengthened competitive position help the shares bounce from support?
- Shares -8.5% from 2018 highs; +21.8% off 2018 lows; +13% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Morrisons – An Example
Let’s say you like the Morrisons trend, you think it’s heading back towards 270p again. You decide to buy exposure to £10,000 worth of Morrisons using a CFD, at the current price of 249p. To do this, you need £2,000.
Let’s assume Morrisons recovers back to 270p (+8.4%). Your profit would be £840, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 5% below the current price. Morrisons 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.