Trade of The Week: Trendy Tesco

Whoever thought I’d find myself describing Tesco as “trendy”? The trendiness of Tesco will not have been helped by it reportedly receiving an investment not so long ago from Warren Buffett — who is probably one of the least “trendy” people on the planet (no offence)! But Buffett’s interest may have helped the share price, which certainly has become trendy over the past few months as shown in the IG Index chart below.

Trading Tesco

You already know that I’m a fan of these IG Index charts (and the similar ones from ETX Capital) that superimpose your existing open trades on the charts. And in this case, it has allowed me to show you how my example position trade from 30 May is performing. Although I established this position against the grain of the prevailing trend (which was down at the time) and which I know is a big “no-no” for trend followers, I have henceforth held with the trend (which now is up) and I might even consider pyramiding into the continuing up-trend. Probably best to wait for a pull-back to the lower trend-line first though, eh?

As it stands, my guaranteed stop order assures me a profitable exit.