A trading opportunity for you?
Will Tesco break support, or will it rise again to 254p Apr highs?
- Intersecting rising support since October; Breakout
- 3 bounces, most recently at 223p today, to trade 232p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 254p highs?
- Shares -8.8% from 2019 highs; +23.2% from 2019 lows; +21.9% year-to-date.
- 3 Jun: Tesco’s Q1 should be attractive to investors says Jefferies
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Tesco – An Example
Let’s say you like the Tesco chart and you think the price is heading back towards 254p again. You decide to buy exposure to £10,000 worth of Tesco using a CFD, at the current price of 232p. To do this, you need £2,000.
Let’s assume Tesco rises back to 254p April highs (+9.4%). Your profit would be £940, 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. 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.