Tesco
A trading opportunity for you?
Will Tesco break support, or will it rise again back to 245p ?
- Tesco has shallow rising support since mid-September
- Bounced off 233p to make it a 3rd bounce off the trendline.
- Now trading 233.2p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 245p recent highs?
- Shares -11.3% from 2018 highs; +24.5% from 2018 lows; +11.5% year-to date
- UK’s biggest Grocer; just launched new discount Jack’s to compete with Lidl and Aldi
- 28 Sept: Interactive Investor says Tesco shares trade at discount to rivals
Trading Tesco – An Example
Let’s say you like the range, you think it’s heading back towards 245p again. You decide to buy exposure to £10,000 worth of Tesco using a CFD, at the current price of 233p. To do this, you need £2,000.
Let’s assume Tesco recovers back to 245p (+5.1%). Your profit would be £510, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 2% below the current price. Tesco falls 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.