Sainsbury
A trading opportunity for you?
Will Sainsbury break support, or will it rise again to 296p?
- 2.5yr rising support at 231p to trade 233p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 296p?
- Shares -20.8% from 2019 highs; +0.9% from 2019 lows; -12.1% year-to-date.
- 20 Feb: Asda-Sainsbury merger faces regulatory block
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Sainsbury – An Example
Let’s say you like the Sainsbury chart and you think the price is heading back towards 296p again. You decide to buy exposure to £10,000 worth of Sainsbury using a CFD, at the current price of 233p. To do this, you need £2,000.
Let’s assume Sainsbury rises back to 296p 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. Sainsbury 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.