Will Morrisons break support, or will it rise again back to 270p highs?

• Morrisons has shallow rising support since mid-June, with the latest bounce off 243.7p today.
• Now trading 244.7p (at time of writing).
• Shares -5.9% from 2018 highs; +25.2% from 2018 lows; +11.3% year-to-date.
• 6 NOv: Morrisons Q3 like-for-like sales ex-fuel +5.6% vs Q2 (Retail +1.3%, Wholesale +4.3%), slowing versus +6.3% in Q2. Like for like transactions +0.2%, items per basket -1.5%
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Morrisons – An Example

Let’s say you like the Morrisons chart and you think the price is heading back towards 270p again. You decide to buy exposure to £10,000 worth of Morrisons using a CFD, at the current price of 244.7p. To do this, you need £2,000.

Let’s assume Morrisons rises back to 270p (+10.3%). Your profit would be £1030, from your initial investment of £2,000.

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.