Ocado
A trading opportunity for you?
Will Ocado break support, or will it rise again to 1437p?
- Rising support since Christmas, latest bounce at 1160p
- Now trading 1190p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 1437p?
- Shares -17.4% from 2019 highs; +54.1% from 2019 lows; +50.6% year-to-date.
- 3 May: Ocado can be the Microsoft of retail says Peel Hunt
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Ocado – An Example
Let’s say you like the Ocado chart and you think the price is heading back towards 1437p again. You decide to buy exposure to £10,000 worth of Ocado using a CFD, at the current price of 1190p. To do this, you need £2,000.
Let’s assume Ocado rises back to 1437p highs (+20%). Your profit would be £2000, 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.