Is this trend a good trading opportunity?
Will Sports Direct turn, or will it continue to rise to November highs of 348p?
- The chart shows the Sports Direct price action since end-October.
- Shares in an uptrend from 225p mid-December lows; now at 275p.
- Shares -37.7% from 2018 highs; +22.9% from 2018 lows; +15.8% year-to-date.
- Shares +20% from recent lows. Will this upward momentum continue?
- 13 Dec: Liberum says Sports Direct performance strong, but House of Fraser will drag
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Sports Direct – 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 Sports Direct using a CFD, at the current price of 275p. To do this, you need £2,000.
Let’s assume Sports Direct trend continues to November highs of 348p (+26.5%). Your profit would be £2650, 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 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.