Is this trend a good trading opportunity?
Will Carnival turn, or will it continue to rise to November highs of 4697p?
- Shares +20.7% since Christmas, +5.5% in the past week.
- 30 Jan: Cruise operator benefiting from rival Royal Caribbean’s strong results
- Now trading 4334p (at the time of writing).
- Will the positive momentum continue towards November highs around 4700p?
- Shares trading at 2019 highs; +17.1% from 2019 lows; +15% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Carnival – An Example
Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Carnival using a CFD, at the current price of 4334p. To do this, you need £2,000.
Let’s assume the Carnival trend continues to November highs around 4700p (+8.4%). Your profit would be £840, 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. Carnival 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.