A range trading opportunity for you?
Will Kingfisher break support, or will it rise back to 268p?
- Rising range since December, bounced off floor
- Now trades 242p (at time of writing)
- Will the pattern repeat itself, testing previous highs of 268p?
- Shares -9.6% from 2019 highs; +19.7% from 2019 lows; +16.9% year-to-date.
- 20 Mar: Targets growth in sales, gross margin, retail profit over med-term
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Kingfisher – An Example
Let’s say you like the range, you think it’s heading back towards 268p again. You decide to buy exposure to £10,000 worth of Kingfisher using a CFD, at the current price of 242p. To do this, you need £2,000.
Let’s assume Kingfisher rises to 268p (+10.7%). Your profit would be £1070, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Kingfisher falls 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.