Marks & Spencer
A range trading opportunity for you?
Will Marks & Spencer break support, or will it rise again back to 315p?
- The Marks & Spencer range has developed since late April
- Bounced off 279p support zone 6 times, most recently on Wednesday.
- Now trading 285.5p (at time of writing)
- Will the pattern repeat itself, testing recent 315p highs?
- Shares -12,6% from May’s 2018 highs; +9.6% from 2018 lows; -9.2% year-to-date.
- 28 Nov: Analysts at RBC Capital Markets say: “We expect M&S’ cashflow profile to remain robust which should support its dividend”
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Marks & Spencer – An Example
Let’s say you like the Marks & Spencer range, you think it’s heading back towards 315p again. You decide to buy exposure to £10,000 worth of Marks & Spencer using a CFD, at the current price of 285.5p. To do this, you need £2,000.
Let’s assume Marks & Spencer rises back to 315p (+10.5%). Your profit would be £1050, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Marks & Spencer falls 4% and hits your stop-loss. Your loss would be £400.
This is provided for information purposes only. It should not be taken as a recommendation.