Marks & Spencer
Is this breakout a good trade for you?
Will Marks & Spencer turn, or will it continue to rise beyond 300p?
- The chart shows the last 3 month’s price action for Marks & Spencer
- The shares have broken above a resistance level at 290p to trade 299p (at time of writing).
- The ‘trend is your friend’. Will it continue?
- Will the shares rise back to July 316p highs?
- Shares -12.6% from 2018 highs; +9.6% from 2018 lows; -5.0% year-to-date.
- 1 Oct: Marks & Spencer to roll out in-store payment app
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Marks & Spencer – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Marks & Spencer using a CFD, at the current price of 299p. To do this, you need £2,000.
Let’s assume the Marks & Spencer trend continues upwards to 316p (+5.7%). Your profit would be £570, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Marks & Spencer breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.