A range trading opportunity for you?
Will Superdry break support, or will it rise again to April highs of 531p (+21%)?
- 400-600p since December;
- Now trading 436p (at time of writing)
- Will the pattern repeat itself, shares testing 531p April highs (+21%)?
- Shares -21% from 2019 highs; +18% from 2019 lows
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Superdry – An Example
Let’s say you like the range, you think it’s heading back towards 600p again. You decide to Buy exposure to £10,000 worth of Superdry using a CFD, at the current price of 436p. To do this, you need £2,000.
Let’s assume Superdry rises back to range ceiling at 760p (+21%). Your profit would be £2100, 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. Superdry 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.