Is this breakout a good trade for you?
Will Sports Direct turn, or will it continue to rise towards 348p?
- Breakout above 275-278p resistance; Now trading 283p (at time of writing).
- Could they recover to prior highs of 348p?
- Shares -0.6% from 2019 highs; +21.5% from 2019 lows; +19.3% year-to-date
- 14 Mar: Sports Direct proposes £150m loan to Debenhams
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Sports Direct– An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 348p. You decide to buy exposure to £10,000 worth of Sports Direct using a CFD, at the current price of 283p. To do this, you need £2,000.
Let’s assume the Sports Direct trend continues to highs of 348p (+22.9%). Your profit would be £2290, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Sports Direct 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.