Is this trend a good trading opportunity?
Will Dixons Carphone turn, or will it continue to rise to 150p highs?
- Shares +13% in a week after 26% sell-off ; Now 125p (at the time of writing).
- Will the positive momentum take them back to 1366p highs?
- Shares -19.9% from 2019 highs; +12.5% from 2019 lows; -4.1% year-to-date
- 11 April: Dixons Carphone well-set if margins improve says Barclays
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Dixons Carphone – 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 Dixons Carphone using a CFD, at the current price of 125p. To do this, you need £2,000.
Let’s assume the Dixons Carphone trend continues to 150p highs (+20%). Your profit would be £2,000, 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. Dixons Carphone falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.