Tesco
A trading opportunity for you?
Will Tesco break support, or will it rise again back to 266p ?
- Tesco has rising support since November
- Bounced off 233p to make it a 4th bounce off the trendline.
- Now trading 239p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 265p recent highs?
- Shares -10.3% from 2018 highs; +26.0% from 2018 lows; +14.2% year-to date
- UK’s biggest Grocer; just launched new discount Jack’s to compete with Lidl and Aldi
Trading Tesco – An Example
Let’s say you like the range, you think it’s heading back towards 266p again. You decide to buy exposure to £10,000 worth of Tesco using a CFD, at the current price of 239p. To do this, you need £2,000.
Let’s assume Tesco recovers back to 266p (+11.3%). Your profit would be £1130, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 3% below the current price. Tesco 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.